annual report and financial statements 2012–13 university ......2 vice-chancellor’s review...

Annual Report and Financial Statements 2012–13University of London Central Institutes and Activities

The University is an exempt charitable body in England, registered in Scotland, with registration number SC005336

The University of London is a federal organisation and is one of the oldest, largest and most diverseuniversities in the UK. It consists of 18 autonomousColleges of outstanding reputation, together with anumber of prestigious academic bodies based at Senate House.The latter are collectively known as the ‘School of Advanced Study’; together they serveand support both the interests of the Colleges and the broader achievements of UK higher education.With the central professional services they strive toenhance the academic excellence of the federalUniversity and to deliver highly effective, value-addedservices to the Colleges, while at the same timeensuring the financial sustainability of all its operations.

1Annual Report and Financial Statements 2012–13

Contents

Vice-Chancellor’s review

Chancellor’s engagements

Financial review

Corporate governance statement

Membership and responsibilities of the Board of Trustees

Statement of internal control by the Board of Trustees

Independent auditors’ report to the Board of Trustees of the University of London

Statement of the University’s principal accounting policies

Consolidated income and expenditure account

Statement of consolidated total recognised gains and losses

Balance sheets

Consolidated cash flow statement

Notes to the financial statements

About us

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Annual Report and Financial Statements 2012–13

This was an exceptionally busy year in the highereducation sector.The full impact of student loans,the rise of Massive Open Online Courses (MOOCs),increased international competition and a reduction in funding levels have all altered the higher educationlandscape.The past two years have seen change happenat a faster pace than at any time in living memory.

I took up my post in September 2012, and have been greatly impressed by the commitment shownby all the people who work here at Senate House.A significant number of senior staff took up theirposts during the course of the year, and with theirsupport and expertise we are very well placed tocontribute with renewed vigour to the academic life of London, the UK and the international marketplace.

Above left to right

Professor Sir Adrian Smith,Vice-Chancellor, University of London

Jenny Abramsky, Chair of the University ofLondon’s Board of Trustees

Chris Cobb, Chief Operating Officer andUniversity Secretary

A vote of confidence in the School of Advanced Study

The focus this year was on the School of AdvancedStudy’s (SAS) successful review by the Higher EducationFunding Council for England (HEFCE). In February 2013,HEFCE published its report announcing that publicfunding for the School will continue at the current levelon the basis of a five-year rolling grant. HEFCE’s decision,in an especially competitive public funding climate forhigher education, reinforces the importance of the publicbenefit delivered by the School as a national and,critically, a neutral research hub.

One of the most gratifying outcomes of the review isthat SAS will no longer be subject to ‘cliff-edge’quinquennial review. Instead, the funding will roll onfrom year to year with a Strategic Advisory Group, whichwill include HEFCE membership, undertaking a lighttouch review of the School annually to satisfy itself that

it is still providing public benefit. These newarrangements mean that SAS will no longer be subjectto planning blight from around year three of theprevious review cycle. Instead the School can now planwith confidence for the future.

The School has had many highlights in 2012–13 insupport of its national mission to support and promoteresearch in the humanities, and these include:

The continued development of innovative digitalresource provision. In January 2013, SAS launched theUK’s first – and freely available – online training platformfor the study of medieval manuscripts, or palaeography.InScribe provides a set of distance learning materialssuitable both for someone interested in exploringpalaeography for the first time, as well as for those in needof a refresher course. The initiative has been developed byseveral of the School’s institutes, including the institutes ofHistorical Research and English Studies, with support fromthe Senate House Library and Exeter Cathedral Library andArchives. While it is designed for postgraduate studentsand academics, interested members of the public are alsowelcome to use the platform.

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Enhanced fellowship opportunities for outstandingvisiting researchers. During May and June, the Schoolwas delighted to welcome Professor James Shapiro, whois the Larry Miller Professor of English and ComparativeLiterature at Columbia University, as the holder of itsprestigious invitation-only ST Lee Visiting ProfessorialFellowship for 2012–13. Professor Shapiro gave a seriesof public lectures during his time in the UK – at theuniversities of Durham, London and Sussex – covering arange of topics including early modern biography and the Cowell manuscript.

An events programme that maximises intellectualoutreach to the academic and non-academicsectors. The School continued to manage and developthe University of London iTunes U platform and to make podcasts available from its own YouTube channel. These projects, led by the School’s CommunicationsOffice, have enabled SAS and the University to makeevents and other research resources freely available tonew audiences around the world. In the first two years,these platforms have received around 400,000 visitsand more than 350,000 podcasts have been viewed or downloaded.

Fostering interdisciplinary networks andcollaborative opportunities. In November 2012,Professor Barry Smith (Director of the Institute ofPhilosophy) was appointed as the Arts and HumanitiesResearch Council (AHRC) Leadership Fellow for thetheme of Science and Culture. Identified through theFuture Directions consultation in 2009, the AHRC’sthemes provide a funding focus for emerging areas ofinterest to arts and humanities researchers. TheseLeadership Fellows will provide intellectual and strategicleadership for the further development of the themesand will work closely with senior AHRC Programmes staffto develop partnerships within and beyond academia.

Right

Professor James Shapiro is the Larry MillerProfessor of English andComparative Literatureat Columbia University

Above right

Professor Barry Smith,Director of the Institute of Philosophy

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Vice-Chancellor’s review continued


International Programmes continues to grow

The University of London International Programmes hadanother successful year. Student numbers increased toover 54,000 and over 7,600 students graduated with an award. Our income grew by around 5% to over £53.2 million. This enabled over £20 million to be paid to Lead Colleges for their contribution to this success.The University was able to retain a surplus of £3.5 millionto use for investment development and reserves.

During the year a number of new programmes werelaunched; these included a new Level 3 InternationalFoundation programme in collaboration with the LSE, and two new masters programmes in collaboration withSOAS – an MA in Global Diplomacy and an MSc in PublicFinancial Management. Initial indications are that thecourses have recruited well.

During the year the University of London, through theInternational Programmes, became the first Englishuniversity to launch MOOC courses on the onlineCoursera platform. Four courses were launched, with theacademic content provided by staff from Goldsmiths andRoyal Holloway, and academics from the LawsConsortium. Over 200,000 students registered for theMOOCs and some 98,000 students actively engagedwith the content. The English Common Law MOOC wascompleted in full by 18% of all students who had initiallyregistered. This is one of the highest completion ratesrecorded for any MOOC on the Coursera platform.

Our graduation ceremony this year was attended by a record number of students and their guests, bringingthe total to more than 2,600 people from over 80 countries. The event was broadcast live on theinternet, with over 50,000 people viewing theceremony online. This year we have again been able toincrease our network of teaching institutions which

now covers over 40 countries and provides academiclearning support for over 60% of our students.

During the year, I instigated a review of the InternationalProgrammes with the core aim of growing studentrecruitment and increasing the number of courses that itoffers as part of a more varied collaboration model withthe Lead Colleges. Initial feedback on the review hasbeen positive.

New contractual frameworks have also been successfullyagreed with a number of Lead Colleges and it is hopedthat new contracts will have been agreed with all LeadColleges during 2013–14.

Far left

Tommy Bowe, the Irishinternational rugby unionplayer, visited theUniversity of LondonInternational Programmesin July 2013, where hewas presented with anoriginal print of SenateHouse, home of theUniversity of London.Tommy, a student of theInternational Programmesmade the visit followinghis victory againstAustralia with the Britishand Irish Lions.

Right above

Professor Jonathan Kyddis interviewed for the livewebcast at the 2012London GraduationCeremony for theInternationalProgrammes.

‘Student numbersincreased to over54,000 and more than 7,600 studentsgraduated with an award’

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New developments in Paris

In 2012 ULIP successfully published its new critical journal,Francosphères (now on its 4th issue), and launched a“Morocco special” in 2013 as part of the development ofULIP’s new research centre, SENAR: the centre for the Studyof European and North-African Relations. Other recentresearch activities include the publication of two books:Paris Amsterdam Underground published by AmsterdamUniversity Press, edited by Professor Andrew Hussey OBE,Dean of ULIP, and Dr Christophe Linder from the Universityof Amsterdam, and The Cambridge Companion to theLiterature of Paris published by Cambridge University Pressand edited by Dr Anna-Louise Milne.

ULIP’s profile was boosted through a number of televisionand radio appearances by the Dean, Professor AndrewHussey who presented the popular BBC 4 documentary,“Treasures of the Louvre”, which was broadcast in March2013. He also presented and appeared in several BBCRadio 4 broadcasts over the course of the year.

2012 saw the launch of the QM LLM in Paris, taught inULIP premises. The programme has recruited well andreceived an award from the Franco-British Lawyers Society.

Will Self chaired a round-table discussion at ULIP onpyschogeography in April 2013, and has been namedVisiting Professor on ULIP’s MA in Paris Studies: History andCulture, alongside Franco-British journalist Agnes Poirier.

New programmes included a French with Spanish degreetaught from Paris and Madrid, and an Arabic summerschool to be taught from Rabat.

Alongside the British Council, ULIP is positioning itself atthe forefront of the campaign to reverse the decline in the study of modern foreign languages in the UK. In 2012 ULIP became a consortium member of theassociation, Routes into Languages.

Senate House Libraries

This was the year that saw the Senate House Librariesdeficit reduce substantially, achieved mainly throughtargeted cuts whilst at the same time developing acompelling and creative narrative for the future. Followingthe loss of National Research Library status in 2009, it hasbeen a challenging time, but the profile of Senate HouseLibrary is now firmly re-established. We aim to reclaimResearch Library status in the short to medium term.

It would be impossible not to mention the national furorethat was stirred up in the late summer of 2013 by theUniversity’s proposal to consult over the possible sale of fourShakespeare Folios held in the Sterling Library. I wasdisappointed that our initial attempts to explore the wideracademic community’s views was made a matter of publicrecord immediately. So the possibility of obtaining consent forthe sale became extremely unlikely. This closed down theopportunity for us to have a reasoned, calm debate over howthe Library might increase its ability to acquire new resourcesfor key areas of scholarship, such as 20th and 21st centuryliterature. Although we did not initiate formal consultationand it was decided there will be no sale of those items, thereis much to discuss around the areas of fundraising anddevelopment for the historic collections. Over the summerwe have been further exploring our options on ways ofincreasing revenue through a development programme.

The publication in November 2012 of Senate HouseLibrary, a lavishly illustrated volume edited by Christopher Pressler and Karen Attar, showed just how rich is the Library’s holding of valuable books,manuscripts and other items.

Above

The Rt. Hon. DavidWilletts MP, Minister for Universities andScience, delivered akeynote speech at theUniversity of LondonInstitute in Paris’ (ULIP)Graduation ceremonyon 17 January 2013.

‘the profile ofSenate HouseLibrary is now firmly re-established’

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Innovation is at the forefront of the ways in which theLibrary delivers its services. It is now the only majorresearch library with a Digital Environments Department asopposed to the more traditional library technical services.This has allowed us a new approach to the design anddelivery of our services, such as our personal device‘Everyware’ project and the development of our new webpresence. This approach has also attracted important newpartnerships, including that with Apple, with whom weare working on a Department for Culture, Media andSport (DCMS) sponsored project with Camden BoroughCouncil, on the lifelong role of libraries and technology.

A new deal for student services

In July 2013 the Collegiate Council and the Board ofTrustees formally agreed the actions which, by nextsummer, will bring to an end the 60-year history of theold federal Students’ Union (ULU), and replace it with aStudent Centre offering an extended range of fit-for-purpose services to students across the University.

The need for change goes back many years, but wasaccelerated in 2012 by the advice from six CollegeStudents’ Unions that they were close to a massresignation from ULU, and a request to the University to undertake a thorough review. Led by the Deputy Vice-Chancellor, Professor Paul Webley, and the DeputyUniversity Secretary, Maureen Boylan, the review ranthroughout 2012/13 and called in evidence and opinionsfrom ULU itself, all College Students’ Unions, theNational Union of Students (NUS), British University andColleges Sports (BUCS) and Heads of Colleges.

The overwhelming evidence was that ULU as a studentunion had essentially outlived its usefulness and did notcommand the loyalty, interest or support of the studentbody. In July 2013, College heads took the decision to stopthe Colleges’ subsidy of ULU and redirect that moneydirectly into their own SUs or other local student service.

When it was set up in 1955, ULU provided typical SUservices across the whole University: inter-collegiate sports,shared social activities, shared space, a focus for studentcampaigning and important rights of representation inacademic, welfare and disciplinary matters within theUniversity. By the 2000s the University structure, studentpolitics, and College provision were unrecognisable fromthose origins. All Colleges have their own Students’ Unionsand all are required to provide for representation andwelfare. Even the smallest Student Unions also offer somesocial and sporting framework and in the larger Colleges,provision is extensive and offered by independently andprofessionally staffed SUs. In the past decade, a typicalelection for a post on the ULU Executive has attracted lessthan 2% voter turnout. As a political entity, the messagefrom the Colleges was that ULU added little value to thestudent experience.

However, evidence from the review also pointed tostrong support for the facilities provided in the ULUBuilding on Malet Street – the largest swimming pool incentral London, a gym, sports halls, a venue for livemusic and events, student-friendly shops, cafes and bars,meeting places for inter-collegiate clubs and societies, aneutral place in the University that all students had equalrights to use, and the staff to support it.

So this is the template for the future: plans aredeveloping to build on the services that are alreadyestablished and valued, to develop a vibrant, sustainableStudent Centre that will cater for the needs of smallerColleges, complement the services available in the largerColleges, and enhance the experience of being a studentat the University of London.

Securing a future for Millport

In 2013, following a warning from HEFCE that it was nolonger prepared to fund the activity, the University took the difficult decision to end its connection with theUniversity Marine Biological Station at Millport.

Although the Station had been running in deficit formany years, the University came to this decision veryreluctantly. The research activity at Millport had declinedbut student groups from all over the UK were stillflocking to the Station for field courses in Marine Scienceof a kind that simply could not be replicated anywhereelse. Millport, on the Isle of Cumbrae in the Firth ofClyde, is a safe shallow bay, offering an exceptionalrange of marine biological habitats, with studentaccommodation five minutes’ walk from the jetty anddeep-water study less than 15 minutes out to sea.Generations of student visitors undoubtedly enjoyed andbenefited from their experience.

Above

Maureen Boylan,Deputy University Secretary

‘The overwhelmingevidence was that ULUas a student union hadessentially outlived itsusefulness and did notcommand the loyalty,interest or support of the student body’

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Nonetheless, without the HEFCE grant, the position wasuntenable, as the University’s subsidy for Millport users wasset to double. An alternative station, with superior researchprovision but a lower quality of student experience and alimited natural environment, was being supported byScottish government funding, and without the possibility ofdeveloping research, Scottish universities were unwilling totake on financial responsibility for Millport.

In deciding to close the Station, the Board of Trusteesstipulated that every effort should be made to findalternative owners and to try to preserve jobs, in whatwas already an economically fragile environment.

Publicity and politics around the issue became very lively,and while the support of the academic community globallyremained strong and sympathetic, the activities andmotivations of various interest groups were an education inthemselves. While party politics played out at local andnational level in Scotland, the University entered into anexcellent relationship with the Field Studies Council (FSC),a charity that runs fieldwork centres throughout the UK,and whose educational interests overlap with, but are muchwider than, the University’s. The FSC has a strong reach intothe secondary school and adult leisure markets, as well asproviding for undergraduate and masters-level field work.

From a first meeting in April between the Vice-Chancellor,Deputy University Secretary and the Chief Executive of theFSC, the University and FSC were sufficiently confident ofone another’s good intentions and commitment that bothBoards of Trustees felt able to issue a memorandum ofunderstanding in June, providing a future for Millport. Thepositive impact on the future bookings and on the widerlocal economy was immediate. The agreement is that theUniversity will freely transfer the assets and liabilities relatedto the site to the FSC on 1 January 2014. The FSC will re-open the Station as a field studies centre in spring 2014

and is committed to a major capital programme,employment of significant numbers of staff, and acontinuation of the important work in marine scienceeducation that the University has supported since the 1960s.

A vision for Senate House

The academic activity at the heart of the University’smission needs a building within which it can flourish.During the course of the year, we looked in some detailat the opportunities afforded by the estate, in particularhow Senate House might need to be adapted to supportthe vital research work of its academic institutions. TheBeveridge Programme, named after the Vice-Chancellorwho was instrumental in the move to Bloomsbury, bringstogether a project team which has started to review howthe University manages its space and workplace practices,to ensure it offers the very best environment for thepursuit of scholarship. Over the course of the comingyear the University will also seek advice from federalmembers on how it can best improve its shared accessspaces such as gardens, grounds, cafés, common rooms,car parks, precincts and events spaces to ensure that theyare meeting the needs of staff, students, and visitors.

As well as reviewing the physical spaces we own andmanage, we are also engaging in new ways of deliveringsupport services such as cleaning and estates maintenance.Much of the summer was spent in negotiations withfederal members to establish a Facilities Management Co-operative. This will enable us to buy services thatrepresent better value for money, as well as allowing us to offer improved terms and conditions to front line staff.

Collaboration through shared services

The newly created Department of Shared Services forStudents and Graduates brought together The CareersGroup (TCG), The University of London Temp Agency,Housing Services and the Reservations team, and it hashad an excellent year with some notable successes.

Following the small pilot in 2012, the Head TenancyScheme has had considerable take-up for 2013–14 and isexpected to provide a total of 121 bed spaces. This is in thecontext of the main work of the Reservations team,allocating around 3,000 student bedspaces across theintercollegiate halls of residence and self-catered properties.

Similarly, in the last twelve months, the University of London Temp Agency has successfully placed 590 students and graduates into work with 78 employers(65% in higher education institutions (HEIs)) and hasprovided the foundation for the highly successfulInternship Scheme run by The Careers Group. TheAgency also bid successfully for a contract to place

Above

Anne-Marie Martin, Director of SharedServices for Students and Graduates.

‘Similarly, in thelast twelve months,the University ofLondon TempAgency hassuccessfully placed590 students andgraduates into workwith 78 employers’

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graduates into project-based internships in 17 Londonboroughs over the next four years. The software andexpertise in the Agency is now being used to develop a service for placing fixed-term lecturing staff.

The Careers Group currently undertakes the Destinationsof Leavers from Higher Education (DLHE) survey for 29 HEIs, and provides data analysis for a further teninstitutions. Further contracts are being added, the latestbeing the University of Westminster. The Careers Groupis also piloting a remote careers and employabilityservice with the Home Learning College. TCG launcheda suite of four websites showcasing all the servicesoffered to a range of customers – job seekers andrecruiters, professional bodies and mid-career changers,and academic institutions.

Elsewhere, the Facilities Management Co-Operative hasattracted interest from ten Colleges across the federalUniversity, a number of which are interested in joiningthe University in its initial implementation phase, which is likely to go live in 2015.

The HR Investigation and Mediation Service was launchedin July 2013 and so far has three members from acrossLondon, with strong interest expressed by around fiveothers. This service provides experts to supportmediation, grievance and disciplinary processes andtraining, and aims to reduce the need for legal advisors.

The University has also provided governance support totwo Colleges.

Residential Halls fit for the modern student

The University is committed to providing good quality,affordable accommodation for its students, and we were delighted when in August 2013, Camden Council’sDevelopment Control Committee resolved unanimouslyto grant planning permission and conservation areaconsent for the redevelopment of the threeintercollegiate Halls of Residence in Cartwright Gardens –the Garden Halls.

Above

The highly successfulInternship Scheme run by The Careers Group.

‘the FacilitiesManagement Co-Operative hasattracted interest from ten Colleges across the federal University’

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The oldest of the three existing Halls was built just beforethe Second World War, and the other two in the 1960s.They are all showing their age and do not provide the typeor standard of accommodation that students increasinglyexpect of an internationally renowned university.

The 1,200 room redevelopment (an increase of 187rooms) will comprise the refurbishment of the 15-storeyHughes Parry Hall tower, providing 246 self-cateredrooms in a cluster flat arrangement; the replacement ofthe rest of the existing buildings with a fully cateredblock of 709 en-suite study bedrooms, with a communaldining room and shared amenity space throughout theblock; and 245 self-catered en-suite rooms in townhouses. We have also undertaken to refurbish the gardenopposite the Halls.

This scheme has been developed over the last 18 monthsin collaboration with University Partnership Programme(UPP), who will provide the facilities management staff to operate the Hall for an initial number of years.Catering and pastoral care will continue to be providedby the University.

ULCC winning in a competitive market

The year saw ULCC enhance and grow its services acrossthe board, with more external clients, increased revenues,and improved service levels. This was achieved in arapidly developing market, with institutions facing severefinancial constraints, coupled with major developments intechnology: the adoption of cloud services becoming awidespread reality in education, and the continuingprevalence of mobile technologies.

The bedrock of ULCC’s services is its datacentre, whichhas continued to grow, in both revenue and scale. A small extension was opened in late summer of 2012,and towards the end of the year a partner was selectedto provide a second site for ULCC services outsideLondon. In both cases, immediate customer demand haspaid back the investment. Technology developments aremoving quickly in this area, and ULCC is responding bydeveloping and enhancing its offer, moving fromproviding a location for customer equipment to provisionof a resilient cloud platform.

The uptake of Moodle as Virtual Learning Environment ofchoice in Higher Education, saw registered users onULCC’s Hosted Moodle Service grow by 1 million duringthe reporting period, reaching an impressive 2.48 millionin July 2013 – a trend likely to continue in the nextacademic year. There is now a range of services offeredto support learning and teaching, through partnershipswith leading suppliers of video management, repositoriesand mobile services.

As a further enhancement, customers were offered theoption of 24/7 support for their Moodle and relatedservices, and to have a fully-configured copy of thecustomer’s service maintained in our second site in caseof a serious incident affecting our core service. These twoadditional options have been taken up by ULCC’s majorcustomers, more than repaying the initial investmentwithin the year.

ULCC’s Archives and Repositories team overcame toughinternational competition when its Digital PreservationTraining Programme (DPTP) was recognised for‘outstanding contribution to safeguard digital future’ and claimed the Digital Preservation Coalition (DPC)Award for Teaching and Communications at a ceremonythat celebrating the DPC’s 10th anniversary.

An important team within ULCC provides support tofurther adult education and other education providers inthe London region on behalf of JISC, which invests intechnology in education on behalf of the funding councils.Notwithstanding pressure on this funding, and the need forcuts to be made, ULCC has continued at its previous level,reflecting the high esteem and value in which it is held.

ULCC’s Service Management Improvement Programme(SMIP) consolidated a number of disparate systems into a single Central Service Desk which logs and records allsupport queries from the Central University and LondonDeanery staff as well as 300+ educational institutionswhich are serviced by ULCC.

By consolidating the Service Desk, retraining andinvesting in staff, and moving to a Service ManagementSystem that follows the principles of the InternationalStandard (ISO20000), customers are already seeing animprovement in their service management. For example,the number of calls resolved at first line has increasedfrom 10% to 45% in just 10 months.

London Deanery

Finally, a brief word about the London Deanery. In April2013 the responsibilities of the Deanery passed to threeLocal Education and Training Boards (LETBs) covering allof London. The LETBs themselves are part of HealthEducation England, the national leadership organisationresponsible for ensuring that NHS education, training,and workforce development drive the highest possiblestandards of public health and patient outcomes. Thestaff continue to be part of the University of London andwe are delighted that they continue to be part of ourextended family.

Professor Sir Adrian Smith,Vice-Chancellor, University of London

‘The bedrock ofULCC’s services isits datacentre, whichhas continued togrow, in bothrevenue and scale’

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Public benefit statement


The University is an exempt charity under the terms ofthe Charities Act 2011. The Charities Commission hasissued guidance on public benefit requiring that theremust be clearly identified benefits related to the aimsof the charity; that the benefits must be to the public,or to a section of the public; that where the benefit isto a section of the public, the opportunity to benefitmust not be unreasonably restricted by geographicalor other restrictions or by the ability to pay fees; andthat people in poverty must not be excluded from theopportunity to benefit.

The objects of the University of London, carried outthrough the Colleges primarily, and also through its CentralAcademic Bodies and Central Activities (to which thesefinancial statements specifically relate), are, for the publicbenefit, to promote education of a university standard andthe advancement of knowledge and learning by teachingand research, and to encourage the achievement andmaintenance of the highest academic standards.

The University makes a significant contribution not just tothe advancement of education, but also, in a variety ofways, to all of the other specific categories of charitablepurposes set out in the Charities Act 2011.

The Colleges of the University, which are all themselvesexempt charities, have included within their respectivefinancial statements for 2012–13, Public Benefitstatements in conformity with the reporting requirementsof the HEFCE Accounts Direction for 2012–13, andreference thereto should be made in considering the publicbenefits delivered by the University, given that its primarypurpose is to serve and further the interests of its Colleges.

The ways in which the central University advances thecategories of charitable purposes are in many cases self-evident from the variety of academic disciplinesassociated with its Institutes and Colleges.

To provide an example, the University of LondonInternational Academy (UoLIA), through its associatedInternational Programmes, delivers programmes in a widerange of disciplines and subject areas. These includeMSc’s in Poverty Reduction, Applied EducationalLeadership and Management, EnvironmentalManagement, Livestock Health and Production, ClinicalTrials, Epidemiology, Infectious Diseases and PublicHealth, and Citizenship Education, as well as BAs inTheology, English, History, Philosophy and Classics, andthe LLM and LLB degrees. The International Programmesare priced competitively to enable students both in theUK and overseas to access them. Thus the cost of atypical three year undergraduate programme is some£3,000 – £4,000, whilst postgraduate programmes areavailable from £8,000 – £13,000.

The University manages a range of trust funds andendowments. The endowment funds as shown in thebalance sheet at 31 July 2013, were carried at their marketvalue which was £72.6m, and the sums expended duringthe year from these funds amounted to £2.7m. Thisexpenditure represents payments in respect of fellowshipsand scholarships, prizes, and chairs and lectureship funds,as well as a range of other awards to assist students andresearchers within the Colleges and UoLIA. The funds thusprovide opportunities to those whose means mayotherwise inhibit them from participating in teaching andresearch activities. The University’s trust funds are alsoutilised to fund an ongoing series of prestigious publiclectures, recitals and readings generally in areas connectedwith the arts and humanities.

The mission of The Careers Group, University of London,is to contribute to the public benefit by enablingorganisations to educate and develop individuals toachieve and maintain career success. The Careers Groupprovides products and services of the highest quality tohelp individuals achieve and maintain career success, tohelp organisations, institutions and academic staff helpindividuals achieve and maintain career success, as well ashelping employers recruit, retain and develop employees.

The Careers Group services and products aredistinguished by being founded on its unique position atthe interface between the University of London and theworld of work, as well as on credible research, and onstaff who uphold the ethics of the careers guidanceprofession and whose expertise and understanding ofstudents, graduates, career management skills andemployment is second to none.

The School of Advanced Study is unique as the onlyinstitution in the UK nationally funded to promote andfacilitate research in the humanities and social sciences.The School’s events programme, comprising a wide rangeof seminars, workshops, lectures and conferences, isunrivalled in scale, focus and quality. During 2012–13,2,000 events were organised attracting over 58,000audience members drawn from the UK, the London area,and internationally. The majority of the events are freeand open to the public, and all are welcomed andencouraged to take advantage of the access to thecurrent research and interdisciplinary cross-fertilisationthat these events afford.

HRH The Princess Royal has been Chancellor of the University of London since 1981. In thiscapacity, the Chancellor attends a wide range ofengagements across the University.



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Chancellor’s engagements continued


Sir Graeme DaviesSir Graeme is Emeritus Vice-Chancellor of the University of London, having been itsVice-Chancellor for seven years, and is currently Chair of the Higher Education PolicyInstitute. He is a Fellow of the Royal Academy of Engineering, the Royal Society ofEdinburgh, and an Honorary Fellow of the Royal Society of New Zealand. Sir Graemewas knighted in 1996 for services to higher education.

Sir Richard Evans Sir Richard Evans was born in Woodford, London, in 1947. He read Modern History at Oxford University. In the 1990s he was Professor of History, Vice-Master and ActingMaster of Birkbeck, University of London. He is currently Regius Professor of Historyand President of Wolfson College at Cambridge University. His many books include a three-volume history of the Third Reich. He was knighted for services to scholarshipin 2012.

Professor Philippe Kourilsky French scientist and humanist, Philippe Kourilsky, is known for his contributions toresearch in molecular genetics and immunology. He is former Director General of thePasteur Institute, Chair at the College de France and at the Singapore ImmunologyNetwork, and member of the French Academy of Sciences. His humanist beliefs areevident in the altruistic philosophy developed in his books.

Sandy Nairne Sandy Nairne is Director of the National Portrait Gallery. He previously helddirectorships at the Tate, Modern Art Oxford, Institute of Contemporary Arts and theArts Council of Great Britain. He is Chair of the Fabric Advisory Committee of St Paul’sCathedral. Sandy’s most recent book is Art Theft and the Case of the Stolen Turners,published by Reaktion, 2011.

Foundation Day 2012 – Wednesday 28 November

Foundation Day last year, held in Senate House on 28 November, is the annual celebration of the University’sfirst charter, granted by William IV on 28 November1836. The Chancellor presided at the evening ceremonyand conferred four honorary degrees.

Sir Graeme Davies Sir Richard Evans

Professor Philippe Kourilsky Sandy Nairne


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The Chancellor’s other engagements

25 October 2012The Chancellor attended the Inaugural Symposium of the Newlife Birth Defects Research Centre (BDRC) basedat the UCL Institute of Child Health (ICH).

The BDRC is Europe’s first research centre to battle birthdefects. Its £6.5m state of the art laboratories, housingthree specialist teams, are dedicated to researching thecauses of birth defects, advancing their diagnosis andtreatment and preventing such conditions in the future.

19 March 2013The Chancellor presided at the University of LondonInternational Programmes’ Graduation Ceremony.

More than 900 graduates from 80 countries receivedtheir degree at the Barbican Centre, in London. Twofurther awards were presented to two exceptionalpeople: Dr TK Whitaker received a Doctorate of Science(Economics) honoris causa, for his lifetime commitmentto the welfare and economic development of Ireland.Martin Bean received a degree of Doctor of Laws honoriscausa, for his leadership in the fields of IT, Testing andAssessment and, in particular, Education, with his careerculminating in his current position as Vice-Chancellor ofthe Open University.

29 April 2013The Chancellor officially opened the new LSE building, 32 Lincoln's Inn Fields (32L).

The School invested £56m refurbishing the Grade 2 listed building, originally constructed in 1903 for the Land Registry.

32L has transformed the LSE campus. It offerscontemporary and flexible teaching and learning space for the School, and provides a new home for the Department of Economics and its affiliated research centres.

‘More than 900graduates from 80countries receivedtheir degree at theBarbican Centre,London’

‘The Chancellorpresided at theevening ceremonyand conferred fourhonorary degrees’

14

Financial review


£M £M £M £M £M2012–13 2011–12 2010–11 2009–10 2008–09

Income 145.5 141.5 145.8 157.0 144.3

Expenditure (140.6) (137.0) (141.7) (154.2) (146.7)

Operating surplus for the year 4.9 4.6 4.1 2.8 (2.4)

Surplus on disposal of assets 1.9 2.3 0.2 23.3 0.2

Surplus after disposal of assets 6.8 6.9 4.3 26.1 (2.1)

Additional key financial figures

Operating surplus as percentage of income 3.4% 3.2% 2.8% 1.8% -1.6%

Cash generated from operating activities 7.5 16.3 9.0 8.1 0.6

Capital expenditure 5.5 6.0 6.7 13.8 17.2

Cash (including endowment cash and near

cash equivalents) balance 50.2 44.4 29.9 32.3 12.6

Net debt balance 10.1 15.8 30.5 28.3 48.2

Financial strategyThe University’s Strategic Plan covers the period 2009–14.

The Plan defines the strategic aims of the University as:

1. to maintain and enhance the academic excellence of

the federal University;

2. to deliver highly effective services to Colleges, offering

excellent value for money;

3. to ensure the financial sustainability of all University

operations;

4. to fulfil the regional, national and international roles of

the University, and;

5. the creation and retention of a workforce with the

necessary ethos, working practices, and competences

to deliver the Strategic Plan.

The financial strategy supporting the third aim of the

University’s Strategy continues to be underpinned by a

number of key components:

1. the need to generate a sufficient annual operating

surplus to support long term sustainability;

2. the need to generate an adequate cash flow sufficient

to support the working capital needs of the University,

its business development and its capital and

investment requirements;

3. the need to maintain sustained ongoing capital

investment in the University's estate, facilities

and IT infrastructure.

In order to measure progress against the Strategic Plan

the University produces an annual Operating Plan.

The Operating Plan, which is updated each year, reviews

performance and progress against the five strategic

objectives over a shorter, one or two year, time horizon.

The Operating Plan identified two objectives for the

2012–13 financial year in support of the financial

sustainability aim:

1. the need to generate an operating surplus of at least

3.2%(of total income) to support long-term

sustainably;

2. to maintain and improve the financial sustainability of

specific activities of the University.

The financial results for the 2012–13 year demonstrate

that the University met its surplus target and continued

the trend seen over the last few years of increasing

surpluses and strengthening the balance sheet. This

Annual Report also separately highlights a number of

examples in the 2012–13 year, where the University has

taken action to maintain and improve the financial

sustainability of specific areas of its business.

During the next financial year the University will be

developing a new Strategic Plan, for the period

2014–2019. This Plan is expected to be published during

the first half of 2014 after wider consultation with the

Colleges of the University. The Plan is expected to include

the same key financial aims as at present (which are

highlighted above) and also the need to improve both

the asset utilisation and the financial return generated

from the assets of the University.

Financial highlights

Andrew Murphy, Director of Finance and PlanningUniversity of London


Financial review

The results for the 2012–13 year show the University is

continuing to improve its financial performance and

solidify its financial position. There is, however, more to

do, to provide the University with the greater capacity

required to support investment in its academic activities,

service business areas and infrastructure. This need to

increase investment capacity will form a key part of the

new financial strategy that will underpin the new

2014–19 Strategic Plan.

The key highlights for the 2012–13 financial year

are as follows.

• Income grew by 2.8% to £145.5 million.

• Expenditure grew by 2.6% to £140.6 million.

• The operating surplus grew to £4.9 million, increasing

from £4.6 million in 2011–12. This represents a surplus

to turnover ratio of 3.4%.

• The retained surplus, after asset disposals was

£6.8 million, compared to £7.3 million last year.

• Cash (including endowment cash and near cash

equivalents) increased by £5.8 million in the year to

£50.2million.

• Net debt reduced from £15.8 million to £10.1million

over the course of the year.

• Capital investment in the year totalled £5.5 million.

These results cannot be read without consideration of

the changing and challenging environment faced by the

Higher Education sector. The University is committed to

maintaining and improving its financial sustainability and

will take the required actions to do so, in the coming

years. The increasing operating surplus in the current year

continues the recent upward trend reflecting the

ongoing benefits from the corporate reorganisation

programme and specific departmental restructuring

initiatives undertaken in previous years, in addition to a

number of new initiatives in the current year.

Income

The main highlights are listed below.

• Funding body grants, primarily from the Higher

Education Funding Council (HEFCE) have decreased by

£0.7 million since the prior year to £10.2 million. This

mainly reflects the end of a one off specific grant

received in 2011-12 on behalf of London Higher.

• Tuition fees and education contracts, which represent

the University’s largest source of income, have

increased by 3.3% to £52.5 million. The largest

element relates to the University’s International

Programmes and the growth in income reflects the

increase in active registered student numbers on these

programmes to over 54,000 students in 2012–13.

• Research grants and contracts income was broadly

unchanged from the prior year at £1.1 million.

• Other income has grown by 3.9% since the prior year

to £77.8 million. There are a number of components:

– Income from College subscriptions and charges

(for services provided to the Colleges from the

University) was broadly flat compared to the prior

year at £9.0 million.

– The largest element relates to the University’s

Residences and Catering operation which includes

the intercollegiate student halls of residence

operated by the University. Income grew by 4.4%

over the prior year to £28.5 million.

180

160

140

120

100

80

60

40

20

0

Funding body grants

£million

2008–09 2009–10 2010–11 2011–12 2012–13

Tuition fees and educational contracts

Research grants and contracts

Endowment and investment income

Other income

– Income in relation to the provision of payroll costs,

accommodation and other services for the Deanery

and its successor body, the Local Education Training

Boards, was broadly unchanged at £19.0 million.

– Other General Income, which includes income

generated from services provided to education

establishments outside of the Colleges of the

University, has grown by 16.1% since the prior year

to £17.5 million.

Expenditure

Total expenditure increased by 2.6% compared to the

prior year; representing a lower rate of growth than the

corresponding growth in revenue.

Unlike most universities, staff costs at the University are

not the largest component of expenditure, and comprise

38.9% of total costs. Staff costs have increased over the

year by 3.8% to £54.7 million. Staff numbers have

grown by 103, representing a growth of 9.8%; with an

increase of 15 in the University and an 88 increase in

staff that form part of the University of London

Temporary Agency and charged out to other employers.

Other operating expenditure has increased by 2.1% to

£76.2 million. This comprises the costs, other than staff

costs, in relation to the International Academy, residences

and catering, maintenance and academic departments

and services.

16

Financial review continued


180

160

140

120

100

80

60

40

20

0

Staff costs

£million

2008–09 2009–10 2010–11 2011–12 2012–13

Other operating costs

Interest payable Depreciation

Capital expenditureThe chart below shows the cumulative and in year capital

expenditure of the University over the last ten years.

The University has continued to invest in improving and

upgrading its teaching and research infrastructure, its

student facilities and its estate generally. Over the last ten

years expenditure has averaged in excess of £14 million

per annum.

An analysis of the principal components of the capital

expenditure over the ten year period to 31 July 2013 is

presented below.

Area of investment £M

Senate House 50.5

Halls 50.3

Stewart House 15.1

Systems 7.1

Computer Equipment 5.7

ULU 4.5

ULIP 3.3

Heritage Assets 2.3

IALS 1.4

IHR 1.3

Warburg 1.1

Other investments 3.5

Total 145.9

160

140

120

100

80

60

40

20

0

Prior years since 2003–04

£million

03–04 04–05 05–06 06–07 07–08 08–09 09–10 10–11 11–12 12–13

Capital expenditure in yearCapital expenditure in year

17

Financial review


Balance sheetAt the year end net assets totalled £240.2 million, risingfrom £219.4 million at July 2012. Whilst tangible assetsfell slightly, to £149.3 million from £152.1 million in July2012, there were increases in the level of cash and cashequivalents and investments and endowment assets.

Cash flowThe University's total cash position (comprising cash,current asset investments and endowment asset cash)grew by £5.8 million across the year to £50.2 million atthe 31 July 2013, reflecting the positive net cash inflowfrom operations. This represents 137 days of expenditure.The increase in cash represents a continuation of thetrend seen in recent years.

At July 2013, the University had long-term borrowing of£60.3 million. This is unchanged from the previous year.Thus net debt has reduced to £10.1 million at 31 July2013, from £15.8 million at 31 July 2012.

As in prior years, the University has continued to pursuea conservative treasury management policy withappropriate counter party limits and security criteria inplace. The treasury management policy, which is agreedby the University’s Investments Committee, accordspriority to security and liquidity with yield considerationsbeing subordinated to these.

Investment performanceDuring 2012–13 the University’s endowment funds weremanaged by Newton Investment Management Limited.The funds were invested in the University’s Unitised TrustFund, which has the investment objective of maintainingincome growth at least in line with inflation andproviding some capital growth. The long-term objectivefor the fund is to achieve a real return of 4% per annum.

On a total return basis, the performance of the Fund for2012–13 reflected the underlying market conditions andwas a return of 10.3% (compared to the Fund’sbenchmark return of 11.6%). The Fund is behindbenchmark over a 3-year period (7.1% annualisedcompared to 8.3%) and over five years (4.0% annualisedcompared to 5.0%) but level with the benchmark over a

£M £M £M £M £MNet debt 2012–13 2011–12 2010–11 2009–10 2008–09

Cash at bank and in hand 10.0 8.0 11.2 13.6 4.2

Endowment assets – short term deposits 3.0 3.2 3.7 8.7 8.3

Current asset investments 37.2 33.3 15.0 10.0 0.0

Debt due within one year 0.0 0.0 (0.1) (0.2) (0.2)

Debt due after one year (60.3) (60.3) (60.3) (60.4) (60.6)

Net debt (10.1) (15.8) (30.5) (28.3) (48.2)

10 year period at 8.7%). In view of this recentperformance the University has undertaken through the2012–13 year, a review of its investment strategy and theasset allocation that the Fund can invest in. Agreementhas been reached since the year end, and the newinvestment strategy and asset allocation will beimplemented during the autumn of 2013.

The University’s investment properties have been subject to a professional valuation as at 31 July 2013,undertaken by Knight Frank LLP, Chartered Surveyors.The valuation has resulted in their carrying value beingincreased by £5.1 million to £47.6 million, an increase of 11.9%.

Risks and opportunitiesThe University of London is a unique institution. Itsoperations centre around the central academic bodiesand support activities, which it performs on behalf of thefederation of 18 self-governing and autonomousmember Higher Education Institutions (HEI’s) thatcomprise its member Colleges.

Whilst the University’s Collegiate Council determines andadvises the Board of Trustees on the collective Collegeview, it is the Board of Trustees which is responsible formanaging the risks and opportunities faced by theUniversity. The University maintains a Strategic RiskRegister, which is regularly reviewed by the Board.

18

Financial review continued


The UK university sector continues to experience a periodof unprecedented change against the backdrop of theongoing reforms of public sector finances. This hasmeant reduced central funding for the sector andincreasing competition as universities vie for the beststudents and new providers enter the market.

2012–13 was the first year in which English HE were ableto raise their fees to £9,000. This new fee regime had asignificant impact on the number of applicants to UKUniversities where, according to UCAS, applications fell by7.7%. It is generally acknowledged that it is too early todraw firm conclusions from the experience of this first yearof the new fee regime and UCAS have reported anincrease in the applications for the 2013 intake. For theUniversity of London these changes do not have animmediate impact as the University does not receive anydirect undergraduate fee income. Further, the University’sown dependency on public funding is less than most otherUK universities; these financial statements show thatfunding from HEFCE accounted for 7.2% of total income.

The International Academy is the major source of incomefor the University. There are both threats andopportunities to this market. The numbers of studentsgrew to over 54,000 and the University launched anumber of new programmes in the year. The Universitywas the first English university to launch MOOC (MassiveOpen Online Courses) courses. The market is becomingmore challenging with increased competition and newlearning technologies and so the University needs to keepdeveloping its programme offering to maintain and thengrow its student numbers into the future.

HEFCE completed their review of specific funding for theSchool of Advanced Study and the University’s MarineBiological Station, Millport, in December 2012. They haveagreed to continue funding for the School of AdvancedStudy on the basis of a five-year rolling grant at the currentlevel, albeit with an element subject to annual review. Thiswill enable the School and University to plan and invest forthe future with confidence and greater certainty.

For the University’s Marine Biological Station, Millport,HEFCE indicated that they were no longer prepared tofund the activity and so the University took the difficultdecision to end its connection with the station in Scotlandand close its operation there. The University worked hardto seek alternative owners and we now expect the FieldStudies Council to re-open the station as a field studiescentre in spring 2014. The University will have no financialresponsibility after the 2013 calendar year.

The University is a significant provider of student residentialservices with its main focus on meeting the needs of thestudents of its Colleges. The University’s halls of residenceaccommodate over 3,000 students and Housing Servicesprovided advice to over 2,000 students living in the private

rental sector (represented by 668 individual cases). Theprovision of first class student services, including residentialservices, is of critical importance to the University and itsColleges. The University is continuing with the plan for theredevelopment of its Cartwright Garden halls, working incollaboration with the University Partnerships Programme(UPP). A key milestone was passed in August 2013 whenplanning permission for the development was obtainedfrom Camden Council. With the Cartwright Gardens hallsproviding approximately one third of our total halls ofresidence capacity, this redevelopment represents a sizableproject for the University and will give a significantmodernisation of the residence provision. We regard theexpansion of this area of our operations as important, inpart because residential accommodation is of suchimportance to present and future students.

The third strategic aim for the University is to ensure thefinancial sustainability of all University operations.Financial sustainability is essential and the University isrequired to generate sufficient surpluses from its activitiesto meet its current and future business needs. TheUniversity will thus continue to review all of its activitiesto ensure that they are sustainable and fit for purpose.The University will continue to look to diversify its incomebase. This may mean reviewing charges for servicesprovided and include the consideration of futureinvestment requirements. It will mean looking for newcustomers for existing services and work to develop newservice offerings. It will also mean looking at the ways inwhich we provide our services. The current focus onservice development highlights the importance to theUniversity of its activities in this area and its desire togrow this provision in a financially sustainable way.

Looking ForwardThe University conducts regular reviews of its prospectivemedium-term financial out-turns by way of using variousplanning scenarios. This enables us to act, bothproactively and reactively should the need arise, tochanges in our environment to ensure that our financialsustainability is unimpaired. The new Strategic Plan willset out the aims for the next five years from 2014-19.Financial sustainability will be a key part of this strategy,as will be the need to provide for investment in ouracademic operations, our service areas and our estateand infrastructure. The University is in a sound financialposition. We will build upon the work undertaken inrecent years, working to grow and diversify our incomebase and surplus with the aim of providing the furtherinvestment capacity that will allow the University tofurther enhance its position at the heart of a federationof world-class academic institutions.

Andrew Murphy Director of Finance and PlanningUniversity of London

19

Corporate governance statement


The following statement is given to assistreaders of the financial statements to obtainan understanding of the governanceprocedures of the University. The Universityendeavours to conduct its business:

• in accordance with the seven principlesidentified by the Committee on Standards inPublic Life (selflessness, integrity, objectivity,accountability, openness, honesty andleadership) and,

• in full accordance with the guidance to theUniversity which has been provided by theCommittee of University Chairmen in its“Guide for Members of Governing Bodies ofUniversities in England and Wales”.

The Board of Trustees, as the charity trusteesof the University, confirm that they havecomplied with the duty in section 17 of theCharities Act 2011, to have due regard to thepublic benefit guidance published by theCharity Commission for England and Wales.

The University is an independent corporation which was

incorporated originally by Royal Charter in 1836 and is,

at present, incorporated by Royal Charter granted in

1863. It is now governed by the University of London Act

1994 and by the Statutes made under that Act, approved

by the Privy Council on 11 June 2008 and effective from

1 August 2008, which set out its objectives, powers and

framework of governance. The University of London is a

federal university and, as well as the central academic

bodies and activities included in these financial

statements, comprises a further 18 autonomous Colleges

each of which is an HEI and a self-governing

incorporated body with its own legal identity and which

receives its funding from Higher Education Funding

Council for England (HEFCE) independently from the

University itself.

The University’s Board of Trustees, the governing and

executive body of the University, comprises nine

appointed independent persons – all of whom are

non-executive – the Vice-Chancellor and four Heads

of Colleges, appointed by the Collegiate Council.

The role of the Chair of Board of Trustees is separated

from the role of the University’s chief executive, the

Vice-Chancellor. The powers of the Board of Trustees

are set out in the Statutes of the University and under

the Financial Memorandum with the Higher Education

Funding Council for England. The Board of Trustees,

which normally meets six times a year, holds to itself,

inter alia, responsibility for the ongoing strategic

direction of the University, approval of major

developments and the receipt of regular reports

from its committees on the day-to-day operations

of its business and of its subsidiary company.

The Board of Trustees is supported by the Collegiate

Council, which comprises the Heads of the Colleges

of the University, the Dean of the School of Advanced

Study, and the Collegiate Council’s Chair, the

Vice-Chancellor. The Collegiate Council is responsible

for determining, and advising the Board of Trustees on,

the collective view of the Colleges in respect of all

matters concerning the University of London as an

incorporated body, including its strategic direction. It is

also responsible for ensuring the proper discharge of the

University‘s academic affairs.

The Collegiate Council, inter alia, approves the strategic

plans of the University’s constituent academic bodies and

activities, and recommends to the Board of Trustees the

University’s annual budgets for these bodies and

activities. It monitors performance against these plans

and budgets, and makes proposals and recommendations

to the Board of Trustees regarding the resources and

services provided by the University to the Colleges, and

on the funding of those services.

The University’s Statutes provide that the Board of

Trustees shall appoint an Audit and Risk Committee and

that the Board of Trustees and the Collegiate Council may

from time to time establish additional standing, special

and advisory committees, sub-committees or boards. The

committees which the Board of Trustees has established,

in addition to the Audit and Risk Committee, include

Nominations, Remuneration, Investments and Safety. All

of these committees are formally constituted with terms

of reference and include members drawn from the

independent membership of the Board of Trustees.

The Audit and Risk Committee, which meets at least

four times a year, is responsible for meeting with the

external auditors to discuss audit findings, and with the

internal auditors to consider their detailed internal audit

reports and recommendations for the improvement of

the University’s systems of internal control, together with

management’s responses and implementation plans.

20

Corporate governance statement continued


The Committee also receives reports on value for money,

monitors adherence to the regulatory requirements and

considers reports from HEFCE as they affect the

University’s business. The Committee advises the Board

of Trustees on the appointment and remuneration of the

external and internal auditors with whom it meets for

independent discussions. Whilst senior executives attend

the meetings of the Committee as necessary, they are

not members of the Committee. The Committee

considers, and recommends to the Board of Trustees,

comprehensive Financial Regulations for the conduct of

the financial affairs of the University, and reviews the

University’s annual financial statements together with

the accounting policies.

The Nominations Committee considers nominations for

independent vacancies on the Board of Trustees. In line

with the University’s commitment to access and equal

opportunities, the Committee seeks to achieve a balance

of membership on the Board of Trustees in terms of

gender, age, ethnicity and disability, and this is an

important consideration for the Committee in selecting

members of the Board of Trustees. Vacancies are

advertised openly and appropriately. Additionally, details

of vacancies are circulated to Heads of Colleges and

College Secretaries.

The Remuneration Committee determines the

remuneration of the Vice-Chancellor and other senior

staff and the Investments Committee is responsible

for matters relating to the investments of the University,

including recommending to the Board of Trustees the

appointment of investment managers. The Safety

Committee is responsible for reviewing and taking

action as appropriate on the University's safety policies

which ensure the health and safety of employees,

students, visitors and others who may be affected by

the University’s activities.

The principal academic and administrative officer of the

University is the Vice-Chancellor, who is responsible to

the Board of Trustees for securing the implementation

of the decisions of the Board, and maintaining and

promoting the efficiency and good order of the

University. The Vice-Chancellor is also, under the terms

of the financial memorandum between the University

and the HEFCE, the designated Accountable Officer of

the University and in that capacity, can be summoned

to appear before the Public Accounts Committee of the

House of Commons.

The Ordinances of the University specify that the

University’s Chief Operating Officer should normally act

as Secretary of the Board of Trustees, and any enquiries

about the constitution and governance of the University

should be addressed to the Chief Operating Officer or

the Deputy University Secretary.

21

Membership and responsibilities of the Board of Trustees


Membership Period 1 August 2012 to 27 November 2013 (unless

otherwise stated):

Independent Members Period of Office

Dame Jenny Abramsky (Chair)

Mr David Beever

Mr Abdul Bhanji

Ms Emma Burns

Mr Steven Fogel

His Honour Judge Grainger

Mr Edward Hartill

Mr Gerard Lemos From 28 November 2012

Mrs Suzanne McCarthy

Vice-Chancellor

Professor Sir Adrian Smith From 1 September 2012

Representative Heads of Colleges

Professor Jonathan Freeman-Attwood,

Principal of the

Royal Academy of Music

Professor Simon Gaskell,

Principal of Queen Mary

University of London From 1 August 2013

Professor Peter Kopelman,

Principal of St George’s,

University of London Until 31 July 2013

Professor David Latchman,

Master of Birkbeck,

University of London

Professor Paul Layzell,

Principal of Royal Holloway,

University of London From 1 August 2013

Professor Sir Richard Trainor,

Principal and President of

King’s College London Until 31 July 2013

ResponsibilitiesIn accordance with the Charter and Statutes of the

University of London, the Board of Trustees of the

University is responsible for the administration and

management of the affairs of the University, including

ensuring that an effective system of internal control is

maintained, and is also required to present consolidated

audited financial statements each financial year.

The Board is responsible for keeping proper accounting

records, which disclose with reasonable accuracy at any

time the financial position of the University, and which

enable it to ensure that the financial statements are

prepared in accordance with the University’s Statutes, the

Statement of Recommended Practice on Accounting for

Further and Higher Education and all other relevant

accounting and financial reporting standards. In addition,

in the terms and conditions of the financial

memorandum agreed between the Higher Education

Funding Council for England (HEFCE) and the University,

the Board, through its Head of Institution and

Accountable Officer (the Vice-Chancellor), is required to

prepare financial statements for each financial year which

give a true and fair view of the state of affairs of the

University, and of the surplus or deficit and cash flows for

the year. During August 2012, prior to the appointment

of Professor Sir Adrian Smith as Vice-Chancellor, the

University’s Deputy Vice-Chancellor, Professor Paul

Webley, assumed the role of Accountable Officer.

In preparing the consolidated financial statements the

Board has ensured that:

• suitable accounting policies are selected and applied

consistently;

• judgements and estimates are made that are

reasonable and prudent;

• applicable accounting standards have been followed,

subject to any material departures disclosed and

explained in the financial statements; and

• financial statements are prepared on the going concern

basis, unless it is inappropriate to presume that the

University will continue in operation. The Board is

satisfied that the University has adequate resources to

continue in operation for the foreseeable future, and

for this reason, the going concern basis continues to be

adopted in the preparation of the financial statements.

The Board has taken reasonable steps to:

• ensure that funds from HEFCE are used only for the

purposes for which they have been given and in

accordance with the financial memorandum with

HEFCE and any other conditions which HEFCE has

from time to time prescribed;

• ensure that there are appropriate financial and

management controls in place to safeguard public

funds, and funds from other sources;

• safeguard the assets of the University and to prevent

and detect fraud; and

22

Membership and responsibilities of the Board of Trustees continued


• secure the economical, efficient and effective

management of the University’s resources and

expenditure.

The key elements of the University’s system of internal

financial control, which is designed to discharge the

responsibilities set out above, include the following:

• clear definitions of the responsibilities of, and the

authority delegated to, heads of academic and

administrative units;

• a comprehensive medium and short-term planning

process, supplemented by detailed annual income,

expenditure, capital and cash flow budgets;

• regular reviews of academic performance and monthly

reviews of financial results involving variance reporting

and updates of forecast outturns;

• clearly defined and formalised requirements for

approval and control of expenditure, with investment

decisions involving capital or revenue expenditure

being subject to formal detailed appraisal and review

according to approval levels set by the Board;

• a formalised treasury management policy;

• comprehensive financial regulations, detailing financial

controls and procedures, approved by the Audit and

Risk Committee and the Board;

• a professional Internal Audit Provider, whose annual

programme is approved by the Audit and Risk

Committee; and

• an ongoing process designed to identify the principal

risks (whether business, operational, compliance or

financial) to the achievement of policies, aims and

objectives, and to evaluate the nature and extent of

those risks and to manage them efficiently, effectively

and economically. The reporting method uses a system

whereby risks are ranked in terms of likelihood and

impact, and are reviewed and periodically reported to

the Board to ensure that procedures are in place for

the identified risks to be managed.

The Audit and Risk Committee, on behalf of the Board,

has reviewed the effectiveness of the University’s system

of internal control. Any system of internal financial

control can, however, provide only reasonable but not

absolute assurance against material misstatement or loss.

23

Statement of internal controlby the Board of Trustees


As the governing body of the University, wehave responsibility for maintaining a soundsystem of internal control that supports theachievement of policies, aims and objectives,while safeguarding the public and other fundsand assets for which we are responsible, inaccordance with the responsibilities assignedto the Board in the University of London 1994Act and Statutes, and the financialmemorandum with HEFCE.

The system of internal control is designed to manage

rather than eliminate the risk of failure to achieve policies,

aims and objectives. It can, therefore, provide only

reasonable, and not absolute, assurance of effectiveness.

The system of internal control is based on an ongoing

process designed to identify the principal risks to the

achievement of policies, aims and objectives, to evaluate

the nature and extent of those risks, and to manage

them efficiently, effectively and economically. This process

has been in place for the year ended 31 July 2013 and

up to the date of approval of the financial statements,

and accords with HEFCE guidance.

As the governing body, we have responsibility for

reviewing the effectiveness of the system of internal

control. The following processes have been established:

• We meet regularly (usually on six occasions a year)

to consider the plans and strategic direction of

the University.

• We receive periodic reports concerning internal control

from the Chair of the Audit and Risk Committee, and

we require regular reports from managers on the steps

they are taking to manage risks in their areas of

responsibility, including progress reports on key projects.

• The Audit and Risk Committee receives regular reports

from the internal audit service, including its independent

opinion on the adequacy and effectiveness of the

University’s system of internal control, together with

recommendations for improvement.

• A robust risk prioritisation methodology based on risk

ranking and cost-benefit analysis has been established.

• An organisation-wide risk register is maintained.

• Reports are received from budget holders,

department heads and project managers on

internal control activities.

The review by the Board of the effectiveness of the system

of internal control is informed by the work of the internal

auditors, Uniac. They operate to the standards defined in

the HEFCE Accountability and Audit: Code of Practice.

Our review of the effectiveness of the system of internal

control is also informed by the work of the executive

managers within the University, who have responsibility for

the development and maintenance of the internal control

framework, and by comments made by the external

auditors in their management letter and other reports.

24 Annual Report and Financial Statements 2012–13

Independent auditors’ report to the Board of Trustees of the University of London

We have audited the financial statements of theUniversity of London for the year ended 31 July2013 which comprise the consolidated incomeand expenditure account, the statement of totalconsolidated recognised gains and losses, theGroup and University balance sheets, theconsolidated cash flow statement and therelated notes 1 to 31. The financial reportingframework that has been applied in theirpreparation is applicable law and UnitedKingdom Accounting Standards (United KingdomGenerally Accepted Accounting Practice) and theStatement of Recommended Practice: Accountingfor Further and Higher Education.

This report is made solely to the governing body inaccordance with the charter and statutes of the University,the financial memorandum effective August 2010. Section44(1)(c) of the Charities and Trustee Investment (Scotland)Act 2005 and regulation 10 of the Charities Accounts(Scotland) Regulations 2006 (as amended). Our audit workhas been undertaken so that we might state to thegoverning body those matters we are required to state toit in an auditor’s report and for no other purpose. To thefullest extent permitted by law, we do not accept orassume responsibility to anyone other than the board ofgovernors as a body, for our audit work, for this report, orfor the opinions we have formed.

Respective responsibilities of the governingbody and auditorAs explained more fully in the Governing Body’sResponsibilities Statement, the governing body isresponsible for the preparation of the financialstatements that give a true and fair view. Ourresponsibility is to audit and express an opinion on thefinancial statements in accordance with applicable lawand International Standards on Auditing (UK and Ireland).Those standards require us to comply with the AuditingPractices Board’s Ethical Standards for Auditors.

Scope of the audit of the financial statementsAn audit involves obtaining evidence about the amountsand disclosures in the financial statements sufficient togive reasonable assurance that the financial statementsare free from material misstatement, whether caused byfraud or error. This includes an assessment of: whetherthe accounting policies are appropriate to the University’scircumstances and have been consistently applied andadequately disclosed; the reasonableness of significantaccounting estimates made by the governing body; andthe overall presentation of the financial statements. Inaddition, we read all the financial and non-financialinformation in the annual report to identify materialinconsistencies with the audited financial statements. If we become aware of any apparent materialmisstatements or inconsistencies we consider theimplications for our report.

Opinion on financial statementsIn our opinion the financial statements:

• give a true and fair view of the state of the Group’sand University’s affairs as at 31 July 2013 and of itssurplus for the year then ended;

• have been properly prepared in accordance with UnitedKingdom Generally Accepted Accounting Practice andthe Statement of Recommended Practice: Accounting forFurther and Higher Education; and have been properlyprepared in accordance with section 44(1)(c) of theCharities and Trustee Investment (Scotland) Act 2005 andregulation 10 of the Charities Accounts (Scotland)Regulations 2006 (as amended).

Opinion on other matters prescribed by theHigher Education Funding Council for EnglandAudit Code of PracticeIn our opinion:

• in all material respects, income from the fundingcouncil, grants and income for specific purposes andfrom other restricted funds administered by theUniversity during the year ended 31 July 2013 havebeen applied for the purposes for which they werereceived; and

• in all material respects, income during the year ended31 July 2013 has been applied in accordance with theUniversity’s statutes and, where appropriate, with thefinancial memorandum and with the funding council.

Matter on which we are required to report by exceptionWe have nothing to report in respect of the following: The Higher Education Funding Council for England AuditCode of Practice requires us to report to you if, in ouropinion:

• the Statement of Internal Control is inconsistent withour knowledge of the University.

The Charity Accounts (Scotland) Regulations 2006 (asamended) requires us to report to you if, in our opinion:

• the information given in the Annual Report isinconsistent in any material respect with the financialstatements; or

• proper accounting records have not been kept; or

• the financial statements are not in agreement with theaccounting records and returns; or

• we have not received all the information andexplanations we require for our audit.

Deloitte LLPChartered Accountants and Statutory AuditorSt Albans, UK28 November 2013


Statement of the University’s principalaccounting policies

Basis of preparationThese financial statements have been prepared in

accordance with the Statement of Recommended

Practice (SORP) ‘Accounting for Further and Higher

Education 2007’ and in accordance with applicable

United Kingdom Accounting Standards. They conform

to guidance published by the Higher Education Funding

Council for England (HEFCE).

The activities of the University, together with the factors

likely to affect its future performance and position are set

out in the Financial Report on pages 14 to 18. Pertaining

to the University’s considerable assets and financial

resources, its Board of Trustees believes it is well placed

to manage its risks successfully notwithstanding the

current economic conditions and future uncertainties

associated therewith. The Board of Trustees has a

reasonable expectation that the University has adequate

resources to continue in operational existence for the

foreseeable future. Thus they continue to adopt the

going concern basis of accounting in preparing the

financial statements.

Basis of accountingThe financial statements are prepared under the historical

cost convention modified by the revaluation of certain

fixed assets and investments.

Basis of consolidationThe consolidated financial statements include the

University and its principal subsidiary undertaking Senate

House Services Limited. Intra-group sales and profits are

eliminated fully on consolidation. In accordance with

FRS2, the activities of the University of London Union

have not been consolidated because the University does

not control these activities.

Related party transactionsThe University is partly funded by subscriptions from the

Colleges within the federation, and by charges for

specific services supplied by the University to Colleges.

Heads of Colleges within the federation are ex officio

members of the Collegiate Council. The Colleges are not

related parties because of their autonomy as independent

higher education institutions.

TaxationThe University is an exempt charity under section 22 and

Schedule 3 of the Charities Act 2011, and as such, is a

charitable company within the meaning of Part 11 of the

Corporation Tax Act (CTA) 2010. The University has

charitable status in Scotland (Reg. No. SC041194), and is

recorded on the index of charities maintained by the

Office of the Scottish Charity Regulator (Charity No.

SC041194). Accordingly, the University is potentially

exempt from taxation in respect of income or capital

gains received within categories covered by Chapter 3 of

Part 11 of the CTA 1990, or section 256 of the Taxation

of Chargeable Gains Act 1992, to the extent that such

income or gains are applied only to charitable purposes.

The University receives no similar exemption in respect of

Value Added Tax (VAT).

The University’s subsidiary companies are subject to

corporation tax and VAT in the same way as any

commercial organisation.

Foreign currenciesTransactions made in foreign currency are recorded at the

rate of exchange ruling at the date of the transaction,

except the transactions made by the University of London

Institute in Paris in euros, which are recorded initially in

the accounting record maintained in Paris and recorded

in the financial statements at the year-end rate.

Monetary assets and liabilities denominated in foreign

currency are translated into sterling at the year-end rate,

and gains and losses arising on conversion are dealt with

in the income and expenditure account.

Recognition of income and expenditureFee income is stated gross and credited to the income

and expenditure account over the period the students are

studying. Bursaries and scholarships are accounted for

gross as expenditure and not deducted from income.

Income from research grants, contracts and other services

rendered, is included to the extent of the completion of

the contract or service concerned. This is generally

equivalent to the sum of the relevant expenditure incurred

during the year and any related contributions towards

overhead costs. Unspent balances are carried forward.

26

Statement of the University’s principalaccounting policies continued


All income from short-term deposits is credited to the

income and expenditure account in the period in which

it is earned.

Donations with restrictions are recognised when relevant

conditions have been met, generally when expenditure is

incurred on specific purposes. Donations which are to be

retained for the benefit of the University are recognised in

the statement of total gains and losses and in

endowments. Other donations are recognised by inclusion

as other income in the income and expenditure account.

Income from endowments not expended in accordance

with the restrictions of the endowment, is transferred from

the income and expenditure account to endowments and

recognised therein as accumulated income.

Recurrent grants from the funding councils are

recognised in the period in which they are receivable.

Non-recurrent grants from funding councils or other

bodies, received in respect of the acquisition or

construction of fixed assets, are treated as deferred

capital grants and amortised in line with depreciation

over the life of the assets.

Cash flows and liquid resourcesCash flows comprise increases or decreases in cash.

Cash includes cash in hand and deposits repayable on

demand. Deposits are repayable on demand if they are,

in practice, available within 24 hours or one working day

without penalty. No investments, however liquid, are

included as cash.

Liquid resources comprise assets held as a readily

disposable store of value. They include sums on

short-term deposits with recognised banks and building

societies and government securities.

Endowment fundsWhere charitable donations are to be retained for the

benefit of the University as specified by the donors, these

are accounted for as endowments. The University

distinguishes two types:

1 Restricted permanent endowments – where the donor

has specified that the fund is to be permanently

invested to generate an income stream to be applied

to a particular objective; and

2 Restricted expendable endowments – where the donor

has specified a particular objective other then the

purchase or construction of tangible fixed assets, and the

University can convert the donated sum into income.

Land and buildingsLand and buildings are stated at cost less amounts

written off to reflect any permanent impairment in value.

Depreciation is charged on the capital cost or valuation

of the buildings. Non-residential freehold properties and

subsequent refurbishments are depreciated over 50 years,

and residential properties and subsequent refurbishments

are depreciated over 30 years. For leasehold properties,

the depreciation term is the period of the lease, if lower

than the freehold rates. Where buildings are acquired

with the aid of specific grants, the related grants are

credited to a deferred capital grants account and are

released to the income and expenditure account, over

the expected useful economic life of the related asset,

on a basis consistent with the depreciation policy. Assets

in the course of construction are not depreciated.

Developmental interest incurred directly as a

consequence of major capital developments is capitalised

as part of the capital costs of the related asset.

Heritage assetsThe University has received gifts and bequests of works

of art, library collections and other decorative items, and

has also purchased works of art with funds from specific

benefactions and public grants. In accordance with the

HE SORP, all acquisitions since 1 August 1998 have been

capitalised at cost, or in the case of donated assets, at

valuation where reasonably obtainable. Heritage assets

are not depreciated, since their long economic life and

high residual value mean that any depreciation would

not be material.

Other tangible assets – equipmentEquipment, other than motor vehicles, but including

computers and software costing less than £20,000 per

individual item or group of related items, is written off

in the year of acquisition. All other equipment is

capitalised and written off over its estimated useful

economic life, namely:

Motor vehicles 3 years

Computing equipment 4–7 years

Other plant and machinery 5–20 years

Boats and boat equipment 10–25 years

27

Statement of the University’s principal accounting policies


Assets of all categories did not commence depreciation

until 1990. Prior to this date no assets were depreciated.

Where equipment is acquired with the aid of specific

grants, it is capitalised and depreciated in accordance

with the above policy, with the related grant being

credited to a deferred capital grants account, and

released to income and expenditure account over the

expected useful economic life of the related equipment.

Leased assetsCosts in respect of operating leases are charged on a

straight-line basis over the lease term.

Leasing agreements, which transfer to the University

substantially all the benefits and risks of ownership of an

asset, are treated as if the asset had been purchased

outright. The assets are included in fixed assets, and the

capital elements of the leasing commitments are shown

as obligations under finance leases. The lease rentals are

treated as consisting of capital and interest elements. The

capital element is applied in order to reduce outstanding

obligations, and the interest element is charged to the

income and expenditure account in proportion to the

reducing capital element outstanding. Assets held under

finance leases are depreciated over the shorter of the

lease term or the useful economic lives of equivalent

owned assets.

Intangible assetsCourse development expenditure within the University of

London International Academy is charged to the income

and expenditure account in the year incurred, unless it

meets the recognition criteria for capitalisation as set out

in SSAP 13 Accounting for research and development.

When the recognition criteria has been met, such

expenditure on course development is capitalised and the

resultant intangible asset written down and charged to

the income and expenditure account, when it becomes

available for use, on a straight line basis over a period of

five years, the expected economic life of the course. An

impairment test is carried out annually, and where it is

judged that the carrying value of the intangible asset

exceeds the likely future economic benefit, then it is

written down appropriately.

InvestmentsBoth fixed asset investments and endowment asset

investments are stated at market value in the balance sheet.

Current asset investmentsCurrent asset investments comprise money on term

deposits which is stated at the lower of cost and net

realisable value, as well as money market funds which

are shown at market value in the balance sheet.

Investment propertiesIn accordance with SSAP 19 Accounting for Investment

properties, investment properties are revalued annually at a

valuation determined by the Board of Trustees, with the

assistance of qualified external valuers. Changes in the

market value of investment properties are taken to the

statement of total recognised gains and losses. No

depreciation is provided in respect of investment properties.

Stocks Stocks, which principally comprise study materials for

resale, are valued at the lower of cost or net realisable

value, after making due provision for obsolete and

slow-moving items.

Provisions and contingent liabilitiesProvisions are recognised when the University has a

present legal or constructive obligation as a result of a past

event and it is probable that a transfer of economic benefit

will be required to settle the obligation, and a reliable

estimate can be made of the amount of the obligation.

Contingent liabilities are disclosed by way of note when

the definition of a provision is not met, and include three

scenarios: a possible rather than a present obligation;

a possible rather than a probable outflow of economic

benefits; and an inability to measure the economic outflow.

28

Statement of the University’s principalaccounting policies continued


Pension schemesThe University participates in the University

Superannuation Scheme (USS) and the Superannuation

Arrangements of the University of London (SAUL). These

are externally funded defined benefits schemes which are

contracted out of the State Second Pension. The liabilities

of both these schemes are valued every three years by

professionally qualified independent actuaries using the

projected unit method, the rates of contribution payable

being determined by the trustees on the advice of the

actuaries. In the intervening years, the actuaries review

the progress of the schemes. Pension costs are assessed

in accordance with the advice of the actuaries, based on

the latest actuarial valuation of the schemes, and are

accounted for on the basis of charging the cost of

providing pensions over the period during which the

institution benefits from the employees’ services.

The University contributes to the National Health Service

Superannuation Scheme (NHSS), an unfunded defined

benefit scheme for the academic and non-academic staff

at the Local Education and Training Boards (LETBs), which

replaced the London and Kent, Surrey and Sussex (KSS)

Deaneries in April 2013.

The University contributes to the French State Social

Security System, an unfunded defined contribution

scheme for the academic and non-academic staff at the

University of London Institute in Paris.

The University complies with FRS17 Retirement Benefits.

Its defined benefit schemes (USS, SAUL and NHSS) are all

multi-employer schemes and, accordingly, given that it is

not possible to identify the University’s underlying share

of their assets and liabilities, are accounted for as if they

were defined contribution schemes.

2013 2012Note £’000 £’000

Income

1 Funding body grants 10,419 11,084

2 Tuition fees and educational contracts 52,504 50,847

3 Research grants and contracts 1,135 1,089

4 Other income 77,840 74,883

5 Endowment and investment income 3,610 3,618

145,508 141,521

Expenditure

6 Staff costs (54,705) (52,688)

7 Other operating expenses (76,233) (74,666)

8 Interest payable (2,697) (2,718)

9 Depreciation (6,935) (6,882)

(140,570) (136,954)

Surplus on continuing operations after depreciation of assets at cost 4,938 4,567

Exceptional items:

Surplus on disposal of fixed assets 1,932 2,344

Surplus after depreciation, exceptional items and disposal of assets 6,870 6,911

Transfer (to)/from accumulated income within endowments (36) 437

Surplus for the year transferred to reserves 6,834 7,348

The consolidated income and expenditure relates wholly to continuing activities.

There is no difference between the surplus stated above and the historical cost equivalent.


Consolidated income and expenditure accountfor the year ended 31 July 2013


2013 2012Note £’000 £’000


11 Appreciation/(depreciation) of endowment asset investments 7,952 (1,266)

11 Appreciation/(depreciation) of fixed asset investments 504 (77)

Appreciation of current asset investments 96 55

11 Appreciation of investment properties 5,071 3,159

16 New endowments 517 1,116

Total recognised gains and losses relating to the year 21,010 9,898

Reconciliation

Opening reserves and endowments 208,331

Total recognised gains and losses relating to the year 21,010

Closing reserves and endowments 229,341

Statement of consolidated total recognised gainsand losses for the year ended 31 July 2013


Balance sheets as at 31 July 2013

Consolidated University

2013 2012 2013 2012Note £’000 £’000 £’000 £’000

Fixed assets

9 Tangible assets 149,258 152,073 146,844 150,184

10 Intangible assets 126 237 126 237

11 Investments 51,899 46,324 51,709 46,286

11 Endowment assets 72,650 64,145 72,650 64,145

273,933 262,779 271,329 260,852

Current assets

Stocks 1,165 1,925 1,164 1,925

12 Debtors 13,086 11,384 14,758 11,453

25 Current asset investments 37,151 33,305 37,151 33,305

Cash at bank and in hand 9,986 7,967 8,535 7,931

61,388 54,581 61,608 54,614

13 Creditors: amounts falling due within one year (33,440) (37,708) (31,056) (35,814)

Net current assets 27,948 16,873 30,552 18,800

Total assets less current liabilities 301,881 279,652 301,881 279,652

14 Creditors: amounts falling due after more than one year (60,250) (60,250) (60,250) (60,250)

15 Provision for liabilities and charges (1,472) – (1,472) –

Total net assets 240,159 219,402 240,159 219,402

Represented by

16 Deferred capital grants 10,818 11,071 10,818 11,071

17 Permanent endowments 63,909 56,203 63,909 56,203

17 Expendable endowments 8,741 7,942 8,741 7,942

18 Revaluation reserve 49,336 43,665 49,336 43,665

19 General reserves 107,355 100,521 107,355 100,521

Total funds 240,159 219,402 240,159 219,402

Approved by the Board of Trustees on 27 November 2013 and signed on its behalf by:

Dame Jenny Abramsky Andrew Murphy Professor Sir Adrian Smith

Chair, Board of Trustees Director of Finance and Planning Vice-Chancellor

The notes on pages 33 to 48 form part of these financial statements.


2013 2012Note £’000 £’000

22 Net inflow from operating activities 7,541 16,325

23 Returns on investments and servicing of finance 674 900

24 Capital expenditure and financial investment (2,554) (2,635)

Cash inflow before management of liquid resources and financing 5,661 14,590

25 Management of liquid resources (3,642) (17,667)

26 Financing – (127)

Increase/(decrease) in cash 2,019 (3,204)

Reconciliation of net cash flow to movement in net debt

25 Increase/(decrease) in cash for the period 2,019 (3,204)

25 (Decrease) in short term deposits (108) (583)

25 Increase in current asset investments 3,846 18,305

25 Decrease in net loan finance – 127

Change in net funds 5,757 14,645

Net debt at 1 August (15,825) (30,470)

Net debt at 31 July (10,068) (15,825)

Consolidated cash flow statement for the year ended 31 July 2013


1. Funding body grants2013 2012

Note £’000 £’000

Higher Education Funding Council for England – recurrent 10,203 10,867

Release of deferred capital grants: 16

Buildings 172 173

Equipment 44 44

10,419 11,084

2. Tuition fees and education contracts2013 2012£’000 £’000

University of London International Academy and overseas student fees 51,551 49,984

Home full time postgraduate fees 618 533

Part time fees 335 330

52,504 50,847

3. Research grants and contracts2013 2012£’000 £’000

Research councils 539 352

UK-based charities 175 218

UK Government bodies – 86

EU Government and other bodies 336 345

Other 85 88

1,135 1,089

Notes to the financial statements for the year ended 31 July 2013


Notes to the financial statements for the year ended 31 July 2013 continued

4. Other operating income2013 2012

Note £’000 £’000

Colleges: subscriptions and charges 8,953 8,915

Residences and catering 28,502 27,313

Estates revenue 3,762 3,840

Other general income 17,539 15,104

Services rendered by the Deaneries, Local Education Training Boards (LETBs) 19,003 19,142

Donations 266 432

Excision of Heritage Assets (321) –

Deferred capital grants 16 136 137

77,840 74,883

5. Endowment and investment income2013 2012

Note £’000 £’000

Transferred from permanent endowments 17 2,200 2,237

Transferred from expendable endowments 17 710 889

Other interest receivable 700 492

3,610 3,618

35



6. Staff costs2013 2012£’000 £’000

Salaries 42,860 41,348

Social security costs 3,705 3,496

Other pension costs 8,140 7,844

54,705 52,688

The above is analysed as follows:

University 35,542 34,432

Deaneries/LETBs 18,091 18,256

Temporary Agency 1,072 –

54,705 52,688

Emoluments of the Vice-Chancellor

Professor Sir Adrian Smith (from 1 September 2012)

Salary 153 –

Professor Geoffrey Crossick (to 31 July 2012)

Salary – 146

2013 2012Number of Number of

staff staff

Average staff numbers expressed as full-time equivalents

University 758 743

Deaneries/LETBs 312 312

Temporary Agency 88 –

1,158 1,055

Remuneration of other higher paid staff, excluding employer’s pension contributions.

University Deaneries/LETBs

2013 2012 2013 2012Number of Number of Number of Number of

staff staff staff staff

£100,000 – £109,999 3 – 3 1

£110,000 – £119,999 – 1 – 2

£120,000 – £129,999 – – 1 –

£130,000 – £139,999 – 1 2 2

£140,000 – £149,999 2 – – –

7. Expenditure by activityStaff Other Depreciation Interest 2013 2012costs operating costs payable£’000 £’000 £’000 £’000 £’000 £’000

Academic departments 5,815 3,452 213 – 9,480 10,184

Academic services 8,299 4,776 646 – 13,721 13,660

University of London International Academy 9,089 36,358 1,045 – 46,492 43,545

Central services 5,793 5,053 886 333 12,065 10,901

General education expenses 267 2,184 – – 2,451 3,288

Staff and students 4,502 1,379 – – 5,881 5,023

Maintenance 772 8,324 2,076 – 11,172 11,135

Residences and catering 1,408 13,446 2,069 2,364 19,287 19,076

Research grants 669 349 – – 1,018 999

Services rendered by the Deaneries 18,091 912 – – 19,003 19,143

54,705 76,233 6,935 2,697 140,570 136,954

2013 2012£’000 £’000

External auditors’ remuneration

– Audit services 81 77

– Non audit services 31 4

Internal auditors’ remuneration 86 63

Hire of plant and machinery – operating leases 112 122

Hire of other assets – operating leases 331 276

8. Interest payable2013 2012£’000 £’000

On loan repayable before one year to five years 145 166

On loans not wholly repayable within five years 2,552 2,552

2,697 2,718

36



37



9. Tangible fixed assets

Consolidated Land and buildingsFreehold Long Short Under Equipment Heritage Total

leasehold leasehold construction assets£’000 £’000 £’000 £’000 £’000 £’000 £’000

Cost or valuation

1 August 2012 167,078 617 6,737 3,729 15,516 2,261 195,938

Additions during the year 590 40 – 3,663 1,216 – 5,509

Completed during the year 2,285 – – (2,353) 68 – –

Disposals during the year (2,660) – – (64) (303) (321) (3,348)

31 July 2013 167,293 657 6,737 4,975 16,497 1,940 198,099

Depreciation

1 August 2012 (31,424) (194) (3,761) – (8,486) – (43,865)

Charge for the year (4,521) (10) (182) – (2,222) – (6,935)

Disposals during the year 1,659 – – – 300 – 1,959

31 July 2013 (34,286) (204) (3,943) – (10,408) – (48,841)

Net book value 31 July 2013 133,007 453 2,794 4,975 6,089 1,940 149,258

Net book value 1 August 2012 135,654 423 2,976 3,729 7,030 2,261 152,073

University Land and buildingsFreehold Long Short Under Equipment Heritage Total

leasehold leasehold construction assets£’000 £’000 £’000 £’000 £’000 £’000 £’000

Cost or valuation

1 August 2012 166,978 617 6,737 3,660 11,033 2,261 191,286

Additions during the year 590 40 – 3,663 – – 4,293

Completed during the year 2,285 – – (2,285) – – –

Disposals during the year (2,660) – – (64) – (321) (3,045)

31 July 2013 167,193 657 6,737 4,974 11,033 1,940 192,534

Depreciation

1 August 2012 (31,336) (194) (3,761) – (5,811) – (41,102)

Charge for the year (4,516) (10) (182) – (1,537) – (6,245)

Disposals during the year 1,657 – – – – – 1,657

31 July 2013 (34,195) (204) (3,943) – (7,348) – (45,690)

Net book value 31 July 2013 132,998 453 2,794 4,974 3,685 1,940 146,844

Net book value 1 August 2012 135,642 423 2,976 3,660 5,222 2,261 150,184


9. Tangible fixed assets continued

Heritage assets

Heritage Assets, recognised at valuation, exclude historic assets which are used by the University and comprise a collection of donated pictures

and other artefacts. The collection is normally on display at the University’s premises.

The University’s external valuer, Bonhams, valued the major part of this collection in 2004 and the remainder in 2010 on the basis of the price

of each item if purchased on appropriate retail premises.

The valuation in 2010 included items on loan from the CNAA collection. These items have now been removed.

10. Intangible assets

2013 2012£’000 £’000

Consolidated and University

Cost

1 August 628 628

Additions during the year – –

31 July 628 628

Amortisation

1 August 391 316

Charge for the year 111 75

31 July 502 391

Net book value 31 July 126 237

Intangible assets represent course development expenditure within the University of London International Academy.




11. Consolidated and University investments

At market value Endowment 2013 Endowment 2012asset Investment Other Total asset Investment Other Total

investments properties investments investments properties investments£’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000

1 August 60,992 42,521 3,803 107,316 60,996 39,362 3,880 104,238

Additions 661 – – 661 1,262 – – 1,262

Disposals – – – – – – – –

Revaluation 7,952 5,071 504 13,527 (1,266) 3,159 (77) 1,816

69,605 47,592 4,307 121,504 60,992 42,521 3,803 107,316

Short term deposits and cash 3,045 – – 3,045 3,153 – – 3,153

31 July 72,650 47,592 4,307 124,549 64,145 42,521 3,803 110,469

Investments held are analysed

as follows:

Unified Trust Fund holdings 69,605 – 4,307 73,912 60,992 – 3,803 64,795

Properties – 47,592 – 47,592 – 42,521 – 42,521

69,605 47,592 4,307 121,504 60,992 42,521 3,803 107,316

At cost

Unified Trust Fund holdings 33,123 – 2,211 35,334 32,487 – 2,211 34,698

Properties – 502 – 502 – 502 – 502

33,123 502 2,211 35,836 32,487 502 2,211 35,200

Investment in subsidiary companies at net asset value

The University of London owns 100% of the issued share capital (one £1 Ordinary Share) of Senate House Services Limited, a company registered

in England and Wales. The principal activity of the company is the provision of operational services to the University of London and its Colleges.

At 31 July 2013 Senate House Services Limited had a deficiency of net assets of £208,000 and accordingly, in the balance sheet of the University

at this date, the value of Investments, including the subsidiary, is reduced by this amount to £51,693,000.

Law 646 Limited, which has issued share capital of £2 and is owned 100% by the University of London, has not traded in the year.

London Intercollegiate Student Housing Limited is a charity registered in England and a company limited by guarantee, registered in England,

with the University of London as its sole member. The company has not traded in the year.

Prosum Shared Services Limited is a company registered in England and has an issued share capital of £1, with the University of London as its

sole shareholder. The company has not traded in the year.

Setoncrest Limited, which had issued share capital of £2 and was owned 100% by the University of London, did not trade in the year.

The company was dissolved in April 2013.

UMBSM Services Limited, which was incorporated in Scotland with an issued share capital of £1 wholly owned by the University of London,

has also not traded in the year. The company was dissolved in August 2013.



11. Consolidated and University investments continued

Investment properties

The investment properties were valued at 31 July 2013 by Knight Frank LLP, Chartered Surveyors. The valuation method adopted has been to

capitalise both the term at passing rent and the reversionary interest at market rent. Appropriate yields have been applied to the term and reversion

respectively in order to provide an investment value of the University’s interest in the land and buildings after making allowance for purchaser’s costs.

12. DebtorsConsolidated University

2013 2012 2013 2012£’000 £’000 £’000 £’000

Trade debtors 9,812 8,772 7,929 6,972

Other debtors 224 219 224 219

Prepayments and accrued income 3,050 2,393 2,390 2,043

Amounts owed by group undertaking – – 4,215 2,219

13,086 11,384 14,758 11,453

Prepayments and accrued income includes £341,000 (2012: £391,000) in respect of tuition fees for periods after more than one year.

13. Creditors: amounts falling due within one yearConsolidated University

2013 2012 2013 2012£’000 £’000 £’000 £’000

Trade creditors 8,602 9,340 7,897 9,090

Grants received in advance 325 406 325 406

Other taxation and social security 3,161 2,768 2,628 2,424

Accruals and deferred income 21,352 25,194 20,206 23,894

33,440 37,708 31,056 35,814



14. Creditors: amounts falling due after more than one year2013 2012

Consolidated and University £’000 £’000

Bank loans 60,000 60,000

Other loans 250 250

60,250 60,250

BORROWINGS

Bank loans Other loans2013 2012 2013 2012

Consolidated and University £’000 £’000 £’000 £’000

Obligations are repayable as follows:

Between one and two years – – – –

Between two and five years 10,000 10,000 – –

Over five years 50,000 50,000 250 250

Total over one year 60,000 60,000 250 250

Within one year (note 13) – – – –

Total due 60,000 60,000 250 250

BANK LOANSFinal

Date loan repayment Balance BalanceLender obtained due date Interest rate outstanding outstanding

2013 2012

£’000 £’000

RBS (unsecured) 2007 2047 Fixed 5.1% 50,000 50,000

Barclays (unsecured) 2010 2015 0.95% over LIBOR 10,000 10,000

Total over one year 60,000 60,000

The first repayment on the RBS unsecured loan is due in 2018. The Barclays loan is repayable on 30 September 2015.

15. Provision for liabilities and charges2013 2012


Closure of Marine Station, Millport 1,472 –

1,472 –


16. Deferred capital grantsGovernment Other grants Totaland agencies and

HEFCE benefactionsConsolidated and University £’000 £’000 £’000

Land and buildings 6,275 4,424 10,699

Equipment 234 138 372

1 August 2012 6,509 4,562 11,071

Land and buildings 159 106 265

Equipment – – –

Additions 159 106 265

Land and buildings (112) (54) (166)

Equipment – – –

Released on disposal (112) (54) (166)

Land and buildings (172) (128) (300)

Equipment (44) (8) (52)

Released to income and expenditure account (216) (136) (352)

Land and buildings 6,150 4,348 10,498

Equipment 190 130 320

31 July 2013 6,340 4,478 10,818

17. EndowmentsRestricted Restricted Total Total

permanent expendable 2013 2012Consolidated and University £’000 £’000 £’000 £’000

Capital 49,448 6,357 55,805 56,017

Accumulated income 6,755 1,585 8,340 8,714

At 1 August 56,203 7,942 64,145 64,732

New endowments 187 330 517 1,116

Investment income 2,200 710 2,910 3,126

Expenditure (1,946) (928) (2,874) (3,563)

Increase/(decrease) in market value of investments 7,265 687 7,952 (1,266)

31 July 7,706 799 8,505 (587)

Represented by:

Capital 56,206 7,475 63,681 55,805

Accumulated income 7,703 1,266 8,969 8,340

63,909 8,741 72,650 64,145




17. Endowments continued

Linked charitiesNote Number Opening Income Capital New Expenditure Closing

of Trusts Fund Appreciation Capital FundBalance Balance

£’000 £’000 £’000 £’000 £’000 £’000

Funds with income over £100,000

Scholarship Fund a 9,123 366 1,203 – 408 10,284

Convocation b 2,228 211 166 250 187 2,668

Chadburn Lectures c 7,500 282 724 – – 8,506

Teachers of Anatomy d 128 239 – – 186 181

Maplethorpe e 4,379 174 577 – 176 4,954

Perrin f 2,771 110 345 – – 3,226

Warburg Institute g (876) 2,777 – – 3,025 (1,124)

Funds with income under £100,000

Research Support 94 27,818 1,087 3,134 399 1,567 30,871

General central 22 4,308 157 1,089 (76) 78 5,400

University support:

Bursary/Scholarship 22 4,579 233 558 (66) 237 5,067

Prize funds 9 1,311 51 156 10 35 1,493

63,269 5,687 7,952 517 5,899 71,526

a Scholarship Fund

The Charity Commission approved a new scheme on 9 February 2011 for the use of these combined charitable trusts. The income is to be

distributed to the Colleges of the University of London for three purposes; by awarding prizes, to undertake research, to provide studentships.

b Convocation

This trust receives donations from University of London alumni and is used to support federal student services.

c Chadburn Lectureship in Medicine

This trust is to support up to two Lectureships on a part time basis to provide opportunities for Doctors in training whose personal circumstances

preclude a full time commitment to their careers.

d Teachers of Anatomy

This trust is to promote the study of anatomy within institutions of medical education in South East England by providing cadavers for the purpose

of teaching and research in anatomy.

e Maplethorpe

This trust is to support up to two annual Lectureships in the study of pharmacy.

f Perrin

This trust is for the furtherance of astronomical knowledge and the study of astronomy.

g Warburg Institute

The Warburg Institute is a constituent part of the School of Advanced Study specialising in cultural history, art history and history of ideas in the

Renaissance. The Warburg Institute operates as an integral part of the operation of the University of London and therefore the income and

expenditure of the Warburg Institute are included within the main income and expenditure account. The designated reserves of the Warburg

Institute are included in the reserves within the main reserves.



18. Revaluation reserves2013 2012


1 August 43,665 40,528

Appreciation/(depreciation) of other investments (note 11) 504 (77)

Appreciation of current asset investments 96 55

Revaluation of investment properties (note 11) 5,071 3,159

31 July 49,336 43,665

19. General reservesConsolidated University

2013 2012 2013 2012£’000 £’000 £’000 £’000

1 August 100,521 93,173 100,521 93,084

Transfer from income and expenditure 6,834 7,348 6,834 7,437

31 July 107,355 100,521 107,355 100,521

20. Access funds2013 2012£’000 £’000

1 August – –

Net received from HEFCE 2 2

Disbursed to students – (2)

31 July 2 –

These Funding Council grants are solely for students. The University acts as paying agent.

The grants and related disbursements are therefore excluded from the income and expenditure account.



21. Operating lease commitments

At 31 July the University of London and the group had the following annual commitments under non-cancellable operating leases:

Land and buildings Equipment

2013 2012 2013 2012£’000 £’000 £’000 £’000

Expiry date:

Less than one year 174 136 73 79

Between one and five years 117 97 83 74

More than five years 222 222 – –

22. Reconciliation of consolidated surplus for the year to net cash inflow from operating activities 2013 2012

£’000 £’000

Surplus on continuing operations after depreciation, exceptional items and disposal of assets 6,870 6,911

Items not involving cash movements:

Depreciation 6,935 6,882

Amortisation of intangible assets 111 75

Deferred capital grants released (352) (354)

Decrease/(Increase) in stocks 760 (800)

(Increase)/decrease in debtors (1,702) 279

(Decrease)/increase in creditors (4,268) 6,576

Increase in provisions 1,472 –

Items which are not operating activities:

Surplus on disposal of tangible assets (1,932) (2,344)

Heritage Asset Adjustment 321 –

Interest payable 2,697 2,718

Endowment and investment income (3,371) (3,618)

Net cash inflow from operating activities 7,541 16,325

23. Returns from investments and servicing of finance2013 2012£’000 £’000

Income from endowments 2,671 3,126

Income from short term investments 700 492

Interest payable (2,697) (2,718)

Net cash inflow from returns on investments and servicing of finance 674 900

24. Capital expenditure and financial investment2013 2012

Note £’000 £’000

Tangible assets acquired 9 (5,509) (5,978)

Endowment assets acquired 11 (661) (1,261)

Receipts from sale of tangible assets 2,834 3,454

Deferred capital grants received 16 265 35

Endowments received 17 517 1,115

(2,554) (2,635)

25. Analysis of changes in net debt1 August Cashflows Non-cash 31 July

2012 Items 2013£’000 £’000 £’000 £’000

Cash at bank and in hand 7,967 2,019 – 9,986

Endowment assets – short term deposits 3,153 (108) – 3,045

11,120 1,911 – 13,031

Current asset investments 33,305 3,750 96 37,151

Debt due within one year – – – –

Debt due after one year (60,250) – – (60,250)

Net debt (15,825) 5,661 96 (10,068)

Management of liquid resources comprises endowment assets-short term deposits and current asset investments.

26. Financing2013 2012£’000 £’000

1 August 60,250 60,377

Capital repayments – (127)

31 July 60,250 60,250





27. Pension obligations

Pension Schemes

The University’s staff participate in three principal pension schemes: the Universities Superannuation Scheme (USS), the Superannuation Arrangements

of the University of London (SAUL) and the National Health Service Scheme (NHSS). These three schemes are all multi-employer schemes with the

assets of USS and SAUL being held in separate trustee administered funds. It is not possible to identify the University’s share of the underlying assets

and liabilities accurately and therefore contributions are accounted for, as permitted by FRS 17, as if they were defined contribution schemes with the

cost recognised for the year in the income and expenditure account being equal to the contributions.

The schemes, which are defined benefit arrangements, are externally funded and contracted out of the State Second Pension (S2P) and both USS

and SAUL are valued every three years by professionally qualified independent actuaries using the projected unit method.

USS

The most recent actuarial valuation of the scheme was at 31 March 2011 using the projected unit method and the

key assumptions and data were as follows:

Investment returns per annum 6.1%

Salary scale increases per annum 4.4%

Pension increases per annum 3.4%

Market value of assets at date of last valuation £32,433M

Regular contribution rate from 1 October 2011 –

employer 16.0%

employee – Final Salary Scheme 7.5%

employee – Career Revalued Benefits 6.5%

Regular contribution rate from 1 October 2009 –

employer 16.0%

employee 6.35%

Proportion of members’ accrued benefits covered by the actuarial value of assets at 31 March 2011 92%

As at the valuation date, the scheme was still a fully Final Salary Scheme. On 1 October 2011, a number of changes to the benefits became effective.

New entrants are now provided on a Career Revalued Benefits basis, the normal pension age was increased for future service and new entrants to 65

and flexible retirement options were introduced.

SAUL

The most recent actuarial valuation of the scheme was at 31 March 2011 using the projected unit method and the

key assumptions and data were as follows:

Investment returns per annum – Pre retirement 6.8%

Investment returns per annum – Post retirement 4.7%

Salary scale increases per annum – until 31 March 2014 3.75%

Salary scale increases per annum – after 1 April 2014 4.5%

Pension increases per annum 2.8%

Market value of assets at date of last valuation £1,506M

Regular contribution rates –

employer 13.0%

employee 6.00%

Proportion of members’ accrued benefits covered by the actuarial value of assets at 31 March 2011 95%


27. Pension obligations continued

As at the valuation date, the scheme was still a fully Final Salary Scheme. With effect from 1 July 2012, new entrants are provided on a Career

Averaged Revalued Earnings basis. Employer contributions for both Final Salary (FS) section and Career Averaged Revalued Earnings (CARE) section

members were 13%. Contributions for employees remained at 6% for FS Section members and CARE Section members.

NHSS

The NHS Pension Scheme (NHSS) is an unfunded defined benefit scheme that covers NHS employers, General Practices and other bodies, allowed

under the direction of the Secretary of State, in England and Wales. As a consequence it is not possible for the University to identify its share of the

underlying scheme assets and liabilities. The University therefore accounts for its pension costs in respect of the scheme on a defined contribution

basis, as permitted by FRS 17 Retirement Benefits, thereby charging to its accounts the contributions payable to the scheme for the year. The NHS

Pension Scheme is funded centrally by the Treasury on a current cost basis.

Other pension arrangements

Members of staff, employed by the University of London Institute in Paris, are contracted into the French State Social Security System for the

purposes of accumulating pension benefit. The Schemes are unfunded and are equivalent to a defined contribution scheme in the United Kingdom.

Accordingly, the University accounts for its pension costs in respect of these schemes, as permitted by FRS 17 Retirement Benefits, by charging to its

accounts the contributions payable for the year.

28. Capital commitments

2013 2012Consolidated and University £’000 £’000

Contracted at 31 July 9,399 900

Authorised but not contracted at 31 July 270 9,300

9,669 10,200

29. Related party transactions

Due to the nature of the University’s operations and the composition of the Board of Trustees and the Collegiate Council it is inevitable that

transactions will take place with organisations in which a member of the Board or Council may have an interest. The Corporate Governance

Statement (page 14) sets out in more detail the relationship between the University and its Colleges. All transactions involving organisations

in which a member of the Board or Council may have an interest are conducted at arm’s length in accordance with the University’s financial

regulations and normal procurement procedures and none of these transactions fall to being disclosed as being with related parties as defined

by FRS 8 Related Party Disclosures. In line with the Committee of University Chairman guidance, all members of the Board and the Collegiate

Council are required to complete a register of interests to record any areas of potential conflict with the interests of the University.

Trustees are not entitled to and did not receive any remuneration for their services. Three Trustees received a total of £800

(2011–12: 3 Trustees £2,000) representing the reimbursement of travel and subsistence expenses incurred in attending

Board of Trustees and Committee meetings and events in their official capacity.

30. Post balance sheet event

The University Marine Biological Station at Millport will close on 31 December 2013 and its physical assets and liabilities will be transferred to the

Field Studies Council. The University of London has provided for the closure costs within these accounts.

In August 2013, the University of London received planning consent from Camden Council to redevelop the Cartwright Garden Halls

of Residence. The plans have also been approved by the Mayor of London.




2013 2012Note £’000 £’000

Income

B Funding body grants 10,419 11,084

C Tuition fees and educational contracts 52,504 50,847

D Research grants and contracts 1,135 1,089

E Other income 73,797 71,657

F Endowment and investment income 3,607 3,618

141,462 138,295

Expenditure

G Staff costs (52,414) (50,748)

H Other operating expenses (75,151) (73,819)

I Interest payable (2,697) (2,718)

Depreciation (6,245) (6,347)

(136,507) (133,632)

Surplus on continuing operations after depreciation of assets at cost 4,955 4,663

Exceptional items:

Surplus on disposal of fixed assets 1,915 2,337


Transfer (to)/from accumulated income within endowments (36) 437

Surplus for the year transferred to reserves 6,834 7,437

The consolidated income and expenditure relates wholly to continuing activities.

There is no difference between the surplus stated above and the historical cost equivalent.

31. University of London as parent charity only

A Income and Expenditure account for the year ended 31 July 2013


B Funding body grantsNote 2013 2012

£’000 £’000

Higher Education Funding Council for England – recurrent 10,203 10,867

Release of deferred capital grants: 16

Buildings 172 173

Equipment 44 44

10,419 11,084

C Tuition fees and education contracts2013 2012£’000 £’000

University of London International Academy and overseas student fees 51,551 49,984

Home full time postgraduate fees 618 533

Part time fees 335 330

52,504 50,847

D Research grants and contracts2013 2012£’000 £’000

Research councils 539 352

UK-based charities 175 218

UK Government bodies – 86

EU Government and other bodies 336 345

Other 85 88

1,135 1,089


31. University of London as parent charity only continued


E Other operating income2013 2012

Note £’000 £’000

Colleges: subscriptions and charges 8,953 8,915

Residences and catering 27,998 26,709

Estates revenue 3,762 3,840

Other general income 14,000 12,482

Services rendered by the Deaneries, Local Education Training Boards (LETBs) 19,003 19,142

Donations 266 432

Excision of Heritage Assets (321) –

Deferred capital grants 16 136 137

73,797 71,657

F Endowment and investment income2013 2012

Note £’000 £’000

Transferred from permanent endowments 17 2,200 2,237

Transferred from expendable endowments 17 710 889

Other interest receivable 697 492

3,607 3,618




G Staff costs2013 2012£’000 £’000

Salaries 41,114 39,876

Social security costs 3,552 3,369

Other pension costs 7,748 7,503

52,414 50,748

The above is analysed as follows:

University 33,251 32,492

Deaneries/LETBs 18,091 18,256

Temporary Agency 1,072 –

52,414 50,748

Emoluments of the Vice-Chancellor

Professor Sir Adrian Smith (from 1 September 2012)

Salary 153 –

Professor Geoffrey Crossick (to 31 July 2012)

Salary – 146

2013 2012Number of Number of

staff staff

Average staff numbers expressed as full-time equivalents

University 717 708

Deaneries/LETBs 312 312

Temporary Agency 88 –

1,117 1,020






G Staff costs continued

Remuneration of other higher paid staff, excluding employer’s pension contributions.

University Deaneries/LETBs

2013 2012 2013 2012Number of Number of Number of Number of

staff staff staff staff

£100,000 – £109,999 3 – 3 1

£110,000 – £119,999 – 1 – 2

£120,000 – £129,999 – – 1 –

£130,000 – £139,999 – 1 2 2

£140,000 – £149,999 2 – – –


H Expenditure by activityStaff Other Depreciation Interest 2013 2012costs operating costs payable£’000 £’000 £’000 £’000 £’000 £’000

Academic departments 5,815 3,452 213 – 9,480 10,184

Academic services 6,023 3,843 8 – 9,874 10,703

University of London International Academy 9,089 36,358 1,045 – 46,492 43,545

Central services 5,776 4,951 834 333 11,894 8,847

General education expenses 267 2,184 – – 2,451 3,288

Staff and students 4,504 1,128 – – 5,632 5,305

Maintenance 772 8,658 2,076 – 11,506 11,135

Residences and catering 1,408 13,316 2,069 2,364 19,157 20,483

Research grants 669 349 – – 1,018 999

Services rendered by the Deaneries 18,091 912 – – 19,003 19,143

52,414 75,151 6,245 2,697 136,507 133,632

2013 2012£’000 £’000

External auditors’ remuneration

– Audit services 81 77

– Non audit services 31 4

Internal auditors’ remuneration 86 63

Hire of plant and machinery – operating leases 112 122

Hire of other assets – operating leases 331 276

I Interest payable2013 2012£’000 £’000

On loan repayable before one year to five years 145 166

On loans not wholly repayable within five years 2,552 2,552

2,697 2,718




About us

CollegesBirkbeck University of LondonCourtauld Institute of ArtGoldsmiths University of LondonHeythrop CollegeThe Institute of Cancer ResearchInstitute of Education University of LondonKing’s College LondonLondon Business SchoolThe London School of Economics and Political ScienceThe London School of Hygiene and Tropical MedicineQueen Mary University of LondonRoyal Academy of MusicThe Royal Central School of Speech and DramaRoyal Holloway University of LondonThe Royal Veterinary CollegeSt George’s University of LondonThe School of Oriental and African StudiesUniversity College London

Central InstitutesSchool of Advanced Study

Institute of Advanced Legal StudiesInstitute of Classical StudiesInstitute of Commonwealth StudiesInstitute of English StudiesInstitute of Historical ResearchInstitute of Latin American StudiesInstitute of Modern Language ResearchInstitute of Musical ResearchInstitute of PhilosophyWarburg Institute

University of London International AcademyUniversity of London Institute in ParisUniversity Marine Biological Station, Millport

Central ActivitiesThe Careers Group University of LondonCentral Administrative and Support ServicesIntercollegiate Halls of ResidencePostgraduate Medical and Dental DeaneriesSenate House LibrariesUniversity of London Computer CentreUniversity of London Housing ServicesUniversity of London Union

As of 31 October 2013.

The financial statements consolidate the centralinstitutes and central activities of the University with the exception of the University of London Union.

The University of London is a federalUniversity and is one of the oldest, largestand most diverse universities in the UK.Established by Royal Charter in 1836, theUniversity is recognised globally as a worldleader in Higher Education. It consists of 18 self-governing Colleges of outstandingreputation, together with a range ofprestigious central academic bodies and activities.

Annual Report and Financial Statements 2012–13University of LondonSenate House, Malet StreetLondon WC1E 7HU

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